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Source: China resumes Brazilian soybean imports from five suspended firms before Lula's visit.
China, the largest soybean buyer in the world, has resumed Brazilian soya bean shipments that were previously suspended due to phytosanitary concerns. This is according to both Chinese customs data and a source who was familiar with the issue. Brazil is the largest soybean exporter and producer in the world, and China's top supplier, as Beijing diversifies away from the United States - its second largest supplier. Source confirmed that the supply resumed on April 25. This was weeks before a state visit by Brazilian President Luiz inacio Lula to China, and as China was trying to rally a global alliance against the U.S. Trade War. In January, it was reported that China had suspended imports of related entities from Terra Roxa Comercio de Cereais (Terra Roxa), Olam Brasil (C.Vale Cooperativa Agroindustrial), Cargill Agricola S.A. and ADM do Brasil. Cargill has many subsidiaries that are licensed to export goods to China. Brazil announced at the time that it would raise the issue with Beijing, and its Agriculture Ministry last month gave officials in Beijing information about the suspended companies. According to the Chinese Customs Database, all entities that have the exact name of the five companies currently have "normal" registration status. The database did not indicate the date of resumption, and it was impossible to verify previous status. ADM do Brasil parent Archer-Daniels-Midland Co, Cargill Inc - the privately-held U.S. grain trading giant and parent of Cargill Agricola SA - Terra Roxa Comercio de Cereais and the parent firms of the other two affected companies did not immediately respond to requests for comment. The Brazilian Embassy and China's GACC did not reply to any requests for comment. China purchases over 60% of the global soybean trade and sources 70% of its imports directly from Brazil, further eroding U.S. share. China will import a record-breaking 105.03 millions metric tons (tonnage) of soybeans in 2024. More than 74,000,000 tons came from Brazil. Brazil's bumper crop is expected to boost China's soybean exports to record levels in the second quarter.
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EU passes final hurdle to soften CO2 car emission targets
The European Parliament backed a softerening of rules on Thursday, which will allow European automakers to have more time to meet EU C02 emission targets for cars and vans. This could also reduce the potential fines. European manufacturers warned that enforcement of the targets could have resulted up to 17 billion euros in fines, given the goals depend on selling more electric cars. This is a segment where Europeans lag behind their Chinese and U.S. competitors. After heavy lobbying by automakers, the European Commission has proposed that they meet their targets using the average emissions for the period of 2025-2027 rather than this year. The change was approved by 458 votes against 101. There were 14 absentee votes. Ursula von der Leyen, President of the European Commission, said that this change will give European automakers a "breathing room". Volkswagen stated last week that the longer compliance period will still be a burden for 2025. Critics claim that the auto industry had seven years to get ready for the 2025 deadline and the estimated fine of 15 billion euros is wildly inflated.
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Ukraine sunoil exports fell 36.2% in April year-on-year, according to traders' union
Ukraine, which is the largest sunflower oil exporter in the world, has reduced its exports of sunoil to 417, 000 metric tons from 654,000 tons a year ago and 503, 000 tons in March. This was down from 654,000 tons a month earlier as well as from 503, 000 tons in march, according to the Ukrainian traders' union UGA. The union did not give any reason for the decline. Some sunoil refineries have been forced to stop production and exports due to a spike in sunflower seed prices. This was caused by the smaller harvest. According to the Ukrainian UCAB agricultural association, this year Ukraine's exports of sunoil could drop to 4,74 million tonnes in 2024/25 from 6,25 million tons during 2023/24 season as the sunseed crop fell 21,4% to 11 millions tons. UCAB reported that Ukraine's total agricultural exports fell by 23.4% in April compared to the previous month, reaching 4.1 million metric tonnes. It also noted that exports were down in almost all product categories. (Reporting and editing by Louise Heavens, Pavel Polityuk)
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South Korea's MFG purchases about 67,000 T of corn, traders claim
Major Feedmill Group of South Korea (MFG) bought approximately 67,000 metric tonnes of animal feed corn at an international tender held on Thursday. The corn was expected to come from South America, traders in Europe said. A consignment of grain was purchased at an estimated cost and freight rate (c&f), plus an extra $1.20 per ton for port unloading. The seller was thought to be CJ International, with grain due for arrival in South Korea on September 10. Two consignments of 55,000 to 70,000 tons corn were requested for arrival in South Korea. The other consignment, which was also said to include MFG partner Cargill Agri Purina, for arrival in August has not been reported as a purchase. If South America was the source of the consignment, it was sought to be shipped between July 13 and august 1 if they were from South America. The reports reflect the opinions of traders, and it is still possible to estimate prices and volume later. South Korean importers have continued to purchase heavy corn in the last two weeks, following a drop in Chicago corn prices. South Korean buyers are traditionally active ahead of the U.S. Department of Agriculture's (USDA) monthly report on world grain and oilseeds, which can create market turmoil. The USDA report will be released on Monday. Michael Hogan (reporting, Susan Fenton, editing)
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South Korea's MFG purchases about 67,000 T of corn, traders claim
Major Feedmill Group of South Korea (MFG) bought approximately 67,000 metric tonnes of animal feed corn at an international tender held on Thursday. The corn was expected to come only from South America, traders in Europe said. A consignment of grain was purchased at $239.67 per ton, cost and freight included. There was also an extra $1.20 surcharge per ton for port unloading. The seller was thought to be CJ International, with grain due for arrival in South Korea in September. Two consignments of up to 140 000 tons of corn were requested for arrival in South Korea. The tender for the August arrival of corn was not won by the second consignment, which also included MFG partner Cargill Agri Purina. The reports reflect the assessments of traders, and it is still possible to estimate prices and volume later. Michael Hogan is reporting.
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U.S. natural gas liquids exports reach record highs in April
Ship tracking data revealed that U.S. natural gas liquid exports reached a new record in April despite a trade dispute between the U.S. Recent trade developments have put at risk U.S. Exports of Natural Gas Liquids (NGLs), like ethane butane and propylene, which are used in the manufacture of plastics, chemicals, as well as heating and cooking. U.S. Exports have reached a new record every year since 2010, thanks to an abundance cheap shale gas. NGLs are the newest energy products caught up in the trade war between two of the largest economies. According to the U.S. government's statistical agency, nearly half of U.S. exports of ethane go to China. China has no other options, as there are few alternatives. Chinese petrochemical companies use it as a feedstock as it is cheaper than alternatives naphtha. Meanwhile, U.S. producers of oil and gas need China to purchase their natural gas liquids because domestic supply exceeds the demand. Data from the ship tracking companies Kpler & Vortexa revealed that in April, the U.S. exported NGLs at a record-breaking rate of 2.9 million barrels a day (bpd). Kpler data shows that exports to China dropped 35% in November to 619,00 bpd, the lowest level since November 2023. Two sources said this week that China has waived the 125% duty on imports of ethane from the U.S., imposed earlier in the month. In the global rerouting of oil, other countries have increased their purchases of U.S. NGLs to compensate for the loss of Chinese purchasing. Kpler data shows that India has more than tripled the amount of oil it purchases, reaching a new record of 179,000 barrels a day. Brazil increased its purchases by more than doubling to 113,000 barrels per day, which is the highest level in five years. Japan, as the second-largest buyer of U.S. Natural Gas Liquids, increased shipments to nearly 400,000 barrels per day, the most since February 2023. The Energy Information Administration predicted that U.S. ethane production would rise by 3.6% this year to 2.9 millions bpd. It added that the majority of this increase in production would be exported to meet growing international demand. In a quarterly earnings conference, Jim Teague, co chief executive officer Enterprise Products Partners, one of the largest exporters of U.S. Natural Gas Liquids, said that the market had already begun rerouting the barrels to the Middle East and U.S., which are the two biggest suppliers of liquefied petrol gas (a mixture of butane and propane). The biggest importers were China and India. The company stated that it did not see any disruptions in its exports of butane, ethane or propane. Rival Energy Transfer is also one of the largest exporters in the U.S. of NGL and said that it had no problem finding a buyer for its LPG or ethane. Enterprise Products reported that total NGL pipe transportation volumes increased 5% while volumes at marine terminals grew 11%. Energy Transfer increased its NGL exports by 5% and transportation volumes by 4%. (Reporting and editing by David Gregorio in Houston, Arathy McCartney and Georgina Mccartney from Houston)
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Tariffs are expected to end the near-record US container import streak in May
U.S. containers imports surged as companies raced against President Donald Trump's new tariffs. These include a 145% tax on goods imported from China. However, executives at two of the busiest ports in the country said that the trend was likely to reverse itself in May. Descartes, a provider of supply chain technology, reported that April container imports increased 9.1% compared to a year ago, topping 2.4 million 20 foot equivalent units (TEUs), which is the second highest monthly total ever. Imports of goods from China, which is the U.S.'s top maritime trading partner, increased by 6.2% in April and represented 33.4% all imports. Trump imposed 145% tariffs against China on April 9, more than doubling their cost to U.S. consumer. This prompted retailers such as Walmart, Amazon.com, and other importers, like Walmart and Amazon.com, to suspend or cancel certain factory orders. He also imposed tariffs of 10% on other countries and warned that these rates could rise. The Port of Los Angeles is the nation's leading gateway for goods from China and the United States' No.1 seaport complex. This week, import cargo will drop 35% year-over-year at the port. The United States' No. 1 seaport complex, and the nation's top gateway for Chinese goods, is expected drop by 35% this week. Seroka said that the overall May ship traffic may decline by around 20%, as operators of large cargo ships cancel their scheduled voyages because demand is weak. Trucks and trains are used to transport many of the goods entering the Port of Los Angeles or the adjacent Port of Long Beach across the United States mainland. Port of Long Beach CEO Mario Cordero anticipates a 20% drop in May compared to a year earlier. Descartes stated that the rapidly evolving U.S. Trade Policies and the retaliatory actions of U.S. Trading Partners as well as the ongoing instability in the Middle East, and Eastern Europe raises the risk of global supply chain disruption. Descartes stated that "the full impact of tariffs - and the expiration of de minimis exemption on May 2 - has yet to reflect in import volumes from China", referring to the popular duty-free shipping for low-value shipments out of China and Hong Kong. (Reporting and editing by Nia William in Los Angeles, Lisa Baertlein from Los Angeles)
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Doba crude oil to be imported in greater quantities thanks to new Mediterranean fuel regulation
Dutch and German oil refining companies have purchased all four cargos of Chadian Doba Crude in April, to take advantage of the soaring demand in Europe for cleaner marine fuel from shipping companies such as Maersk. Kpler reports that Asia was the primary destination for Doba cargoes before April. China and Malaysia both received multiple cargoes. The International Maritime Organization (IMO) designated the Mediterranean Sea an Emission Control Zone in May. This means that ships must switch from 0.5% sulphur to 0.1% sulphur. Exports of Doba crude to Europe soared as a result. The heavy, sweet Doba is ideal for ultra-low sulfur fuel oil (ULSFO), which has a maximum of 0.1% sulphur. Rystad Energy analyst Valerie Panopio said that Doba was ideal for ULSFO blending. Increasing exports to Germany in April and to the Netherlands could be a way to take advantage of the expected surge in ULSFO. She said that there are not many grades of coffee with the same qualities as Doba Blend. Even harder to find, is one in a steady and ample supply. Shipping data from Kpler indicates that Chad exports approximately 130,000 barrels of this grade per day and regularly ships it to Asia and Europe, as well as the Middle East. According to Kpler, four Suezmax vessels were in place in April, delivering about 127,000 bpd Doba into Europe. This would be the highest volume of Doba on this route in an entire year. Kpler data show that two oil refineries, including Chane's Rotterdam facility in the Netherlands and HES International Wilhelmshaven in Germany, have been the sole European recipients of Doba Crude since January. Maersk Energy Markets (the Danish shipping company’s bunker buyer) has signed a contract to purchase ULSFO at Chane’s Rotterdam facility to make its fleet compliant with new requirements for the Mediterranean, Maersk announced. Chane and HES did not reply to requests for comments sent via email. Enes tunagur reported the story. (Editing by Alex Lawler and Dmitry Zhdannikov)
The discount on CANADA CRUDE-Western Canada Select continues as it shows strength.
The Canadian heavy crude price continues to be strong, with the discount between West Texas Intermediate (WTI), the North American benchmark futures contract, and Western Canada Select (WCS), the North American benchmark futures contract.
WCS for June Delivery in Hardisty Alberta settled at $8.75 per barrel below the U.S. benchmark WTI according to brokerage CalRock. It had settled at $8.95 below the U.S. standard on Tuesday.
Last time Canadian heavy crude traded so closely below the U.S. benchmark, it was in 2020 during global oil price volatility due to pandemics.
Canadian heavy crude is trading at a discount, in part because the Trans Mountain expansion pipeline was opened a year ago. This increased the country's capacity to export oil. WCS is also experiencing seasonal strength at this time of the year, as summer driving season increases refinery demand.
Canadian crude also benefits from U.S. Sanctions on Venezuela and other nations, which boosts demand for heavy crude producers who are not sanctioned.
* The global oil price fell more than $1 a barrel on Wednesday, as investors questioned whether upcoming U.S. China trade talks would result in a breakthrough. Meanwhile, hopes of an Iran-U.S. nuke deal eased concerns about supply.
(source: Reuters)