Africa ferts: IFDC urges free fertilizer movement
Non-profit international organisation IFDC has called on the Economic Community of West African States (Ecowas) not to subject fertilizers to any restrictions on importation, distribution or use within its 15 member countries during the coronavirus outbreak.
In a letter to the Ecowas commissioner for agriculture dated 1 April, and seen by Argus, IFDC underlines the importance of maintaining agricultural production and avoiding a food crisis in the west African region. This means all fertilizers, both organic and inorganic, should be considered a "strategic product without borders" during the coronavirus pandemic, and as originally decreed under the Africa Fertilizer Summit (the so-called Abuja declaration) of 2006.
The IFDC recommendation applies to port activities, manufacturing and blending, logistics — including domestic and intra-regional trade — and the rights of distributors and retailers to continue to supply agricultural producers with fertilizers.
There are signs that IFDC's stance is already bearing fruit. Ivory Coast has recently reclassified fertilizers as a strategic commodity, allowing unhindered movement from the port of Abidjan. Reports indicate Ghana has also issued a statement encouraging the free movement of agri commodities during the coronavirus pandemic.
Related news posts
Bangladesh DAP/TSP tender offers emerge
Bangladesh DAP/TSP tender offers emerge
London, 4 July (Argus) — Bangladesh's private-sector tender for 500,000t of DAP, which closed today, drew offers from 13 traders for at least 394,000t at $645-695/t cfr for lots of 15,000-40,000t. There was also one small offer of 4,000t at $925/t cfr. Freight from China, the likeliest source of the DAP, is estimated at $30-35/t, with other associated costs at $30-55/t. This suggests the lowest netbacks to China are at around $560/t fob. It is unclear how much backing local traders have and whether Chinese producers would support offers at the low end. Bangladesh received seven TSP offers totalling 65,500t, with three specifying Moroccan or Lebanese origin. Prices ranged at $645-661/t cfr for 10,000-30,000t lots, with two traders offering 2,500-3,000t lots at $940-950/t cfr. The tender had sought 250,000t of TSP. A full list of offers and further analysis will be published in due course. By Mike Nash Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Brazil ups 2024-25 crop farm loans by 10pc
Brazil ups 2024-25 crop farm loans by 10pc
Sao Paulo, 3 July (Argus) — Brazil's subsidized farm loan program for medium and large producers in the 2024-25 season will rise by 10pc from the prior season. The federal government will offer R400.6bn ($71.7bn) in loans to producers, up from R364.2bn in the 2023-24 season. The loans offered under the program, known as Plano Safra, are destined for the crop year starting on 1 July and ending on 30 June 2025. The total amount set for funding operational costs and commercial transactions is set to rise by 8pc on the year to approximately R293.3bn. The remaining R107.3bn are intended for investments, a 16.5pc yearly increase. Farmers will also be able to count on credit lines and bond issuances, which are set to add another R108bn in available resources. Interest rates for investments vary from 7-12pc/yr, depending on the loan, which compares with Brazil's basic interest rate Selic of 10.5pc/yr. For those under the Pronamp program, which is available to medium-sized farmers, interest rates for funding and commercial transactions were fixed at 8pc/yr. Rates were at 5-12.5pc/yr under the 2023-24 program, while the national interest rate was at 13.75pc/yr at this time last year. The RenovAgro credit line — aimed at financing sustainable agricultural practices that reduce greenhouse gas emissions — continues with an interest rate of 7pc/yr. The federal government will also offer R76bn in loans to small-sized farmers, up by 6.2pc from the prior program. Considering small, medium and large farmers, the loans under the federal program total R475.5bn, a 9pc increase from R435.8bn in the previous cycle. By Nathalia Giannetti Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Upper Mississippi locks closed by high water
Upper Mississippi locks closed by high water
Houston, 3 July (Argus) — High water levels on the upper Mississippi River have caused several lock closures and spurred delays for barge carriers. Lock and Dams (L&D) 12, 16 and 17 on the upper Mississippi River closed 2 July and are expected to remain closed through the rest of this week and possibly into the next, according to the US Army Corps of Engineers. Locks 11, 13, 18 and 20 are expected to close on 4 July. The Corps will likely close locks 14 and 22 on 5 July, while lock 15 is expected to close 6 July. The Corps said the duration of the July 4-5 closures is unclear. Another 2-5 inches of rain fell along the western Corn Belt in the past week, according to the National Oceanic and Atmospheric Administration. High river conditions led to major flood status at Dubuque, Iowa, while other locations along the river are at moderate flooding levels. Water levels are 4-5ft below record highs on the upper Mississippi River. The outdraft at lock and dam 16 was at 211,444 cubic feet per second (cfs) on Tuesday, compared with typical flow of 41,100cfs. Major barge carrier American Commercial Barge Line anticipates 7-10 days of disruption followed by a 2-3 week catch-up. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Mexico economy showing 'timid growth': IMEF
Mexico economy showing 'timid growth': IMEF
Mexico City, 3 July (Argus) — Indicators of Mexico's non-manufacturing and manufacturing sectors suggested the economy recovered "some dynamism" in June, while maintaining the slow pace of growth of the second quarter, according to domestic financial association IMEF. "The trend suggested by the IMEF indicators suggest a moderate growth for the second quarter of the year," IMEF said. "The economy finds itself in an evident pause compared with the solid dynamism observed during 2022 and a large part of 2023." Manufacturing "stagnated" in the second quarter, it said. "It is very probable that economic activity will undergo additional slowdown in the second half of the year that will extend into 2025." IMEF's June manufacturing purchasing managers index (PMI) increased by 0.4 points to 49.5 points, still beneath the 50-point breakeven that shows contraction. This has been the third consecutive month of contraction. PMI adjusted to compensate for variations in company size was more positive, growing by 0.8 points to 51.2 in June, the group said. Manufacturing accounts for about a fifth of the Mexican economy. The non-manufacturing PMI, which covers the lion's share of the economy, rose by 0.6 points to 51 in June, marking a 29th month of expansion, IMEF said. Adjusted for company size, the headline services PMI rose by 0.9 to 5.18. Economic activity in Mexico continues to surprise downwards. After growth came in at an annual 1.6pc in the first quarter from a year earlier, the first data for April showed a monthly contraction of 0.6pc, IMEF said. Headwinds and tailwinds IMEF representatives highlighted growing market uncertainty following the Mexican election and ahead of the US presidential election in November. On the upside, said IMEF, Mexico should benefit from continued strength in the US economy, adding the incoming administration looks to bring down the current fiscal deficit, which is equal to 5.9pc of GDP. It will not reach the government's 3pc target for the budget coming out in November, but progress is expected with next year's budget and moving forward. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more