OFI March/April 2020

OILS & FATS INTERNATIONAL

MAR/APR 2020 â–ª VOL 37 NO 3

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OLEOCHEMICALS Moving downstream

SOYABEANS Market review

Cover March.indd 1

17/03/2020 17:56:36

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Science behind Technology

CONTENTS

OILS & FATS INTERNATIONAL

IN THIS ISSUE – MARCH/APRIL 2020

FEATURES

Plant & Technology

NEWS & EVENTS

Oleochemicals

28 20

Moving downstream There is a wide range of choices for palm oil operators wishing to move into oleochemical derivatives

Global round-up of projects The latest projects, technology and processing news around the world

Latin America

Comment

2

Viral impact

News

4

Soyabeans

Coronavirus leads to price falls

Biofuel News

10

Palm biofuel use may impact exports

Transport News

34

24

Market review

The soyabean market has been disrupted by the China-USA trade war, African swine fever and the outbreak of the novel coronavirus

Steady growth in Mexico

12

Mexico is an attractive market for edible oils, with soyabean remaining the main oil produced domestically

Biotech News

13

Sharp rise in low sulphur fuel sales at Rotterdam Bayer and BASF lose dicamba trial

Renewable News

14

Elevance sells biorefinery stake back to Genting

Diary of Events

16

International events listing

International Market Review

17

Turbulent times for commodities

Statistics

36

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Contents March.Apr.indd 1

World statistical data

OFI – MARCH/APRIL 2020

1

19/03/2020 12:38:37

EDITOR'S COMMENT

OILS & FATS INTERNATIONAL

VOL 37 NO 3 MARCH/ APRIL 2020

EDITORIAL: Editor: Serena Lim serenalim@quartzltd.com +44 (0)1737 855066 Assistant Editor: Gill Langham gilllangham@quartzltd.com +44 (0)1737 855157 SALES: Sales Manager: Mark Winthrop-Wallace markww@quartzltd.com +44 (0)1737 855114 Sales Consultant: Anita Revis anitarevis@quartzltd.com +44 (0)1737 855068 PRODUCTION: Production Editor: Carol Baird carolbaird@quartzltd.com CORPORATE: Managing Director: Tony Crinion tonycrinion@quartzltd.com +44 (0)1737 855164 SUBSCRIPTIONS: Elizabeth Barford subscriptions@quartzltd.com +44 (0)1737 855028 Subscriptions, Quartz House, 20 Clarendon Road, Redhill, Surrey RH1 1QX, UK © 2020, Quartz Business Media ISSN 0267-8853 WWW.OFIMAGAZINE.COM

A member of FOSFA Oils & Fats International (USPS No: 020-747) is published eight times/year by Quartz Business Media Ltd and distributed in the USA by DSW, 75 Aberdeen Road, Emigsville PA 17318-0437.

Periodicals postage paid at Emigsville, PA. POSTMASTER: Send address changes to Oils & Fats c/o PO Box 437, Emigsville, PA 17318-0437 Published by Quartz Business Media Ltd Quartz House, 20 Clarendon Road, Redhill, Surrey RH1 1QX, UK oilsandfats@quartzltd.com +44 (0)1737 855000 Printed by Pensord Press, Gwent, Wales

Viral impact Since the novel coronavirus (Covid-19) first emerged in China in December, its spread and impact on all aspects of our lives have grown dramatically.

Lock-downs in cities, the grounding of flights, overwhelmed health systems, panic buying in supermarkets, cancelled events, restaurants and businesses having to shut down and, of course, the actual toll on health.

As of 18 March, Worldometers reported 203,612 Covid-19 cases globally and 8,229 deaths, an exponential rise from just 580 cases and 17 deaths on 22 January. The actual number of cases will be higher as some countries, like the UK and USA, are barely testing for the virus.

No one knows when the pandemic will peak – some scientists suggest transmission rates will drop as we head into the Northern Hemisphere spring and summer but may rise again in winter 2020-21.

And the more measures countries take to flatten the infection curve, the more they are steepening their recession curve.

The oils and fats market has seen prices plummet due to fears of a fall in demand (see p4).

“The closest parallel to the current epidemic is the SARS outbreak 17 years ago, which had a much more limited geographical spread,” says industry expert James Fry, chairman of LMC International. “Inevitably, there were distinct repercussions for world trade in oils. However, the surprise back then was that the slowdown in oils imports into China and in the exports of palm oil from South East Asia to the whole of Asia occurred just after the epidemic had stopped infecting more people. Presumably shipments booked earlier continued to flow, but port stocks in importing countries accumulated, and imports were then scaled back afterwards.

“Something similar seems to be happening now with Covid-19. Exports have, generally speaking, continued to flow but stocks at import ports have increased, which means that we can expect a slowdown in trade volumes very soon, and continue for some time to come.”

Godrej International director Dorab Mistry says the vegetable oil market has been hit by a triple whammy of factors rarely seen before. “In the second half of 2019, the Indian economy slowed down and affected Indian buying, along with other major markets like Pakistan and North Africa. Then comes Covid-19 which hits Chinese buying and slows down every other market. And finally comes the Saudi-Russian feud which depresses crude oil prices.”

Without the Indonesian B30 biodiesel blending mandate, crude palm oil prices would be in the US$400-500 FOB range, he says.

“Looking forward, the Covid-19 impact on demand is a developing situation. The stock market meltdown, the weakness of emerging market currencies and the generally anaemic economies of major markets give us a deadly cocktail.”

Mistry says world demand for edible oils for food this year may grow by only 1.5M tonnes against a normal growth of 3M tonnes.

Our market, along with all others, faces a rocky ride ahead.

@oilsandfatsint

Oils & Fats International

2 OFI – MARCH/APRIL 2020

Comment.indd 1

Serena Lim – serenalim@quartzltd.com www.ofimagazine.com

19/03/2020 10:47:40

NEWS

Coronavirus leads to price falls World food prices fell in February for the first time in fourth months due to a sharp fall in the export prices of vegetable oils partly driven by fears that the novel coronavirus (Covid-19) would slow global demand, the Food and Agriculture Organization (FAO) of the United Nations said on 5 March.

The FAO vegetable oil index declined 10.3% from January, with international palm oil prices falling by even more on account of higher-than-expected output in Malaysia, a temporary drop in India's import demand and concerns over the spread of Covid-19.

Bloomberg reported on 28 February that palm oil futures posted their steepest

IN BRIEF ARGENTINA: A soyabean export tax based on farm size is being proposed to increase revenue and reduce competition between commercial and small-scale producers, according to a 5 March USDA Agricultural Information Network report.

“We are applying the concept of social equality, that export taxes are rising for those with greater ability to pay, and there will be a benefit for less well-off producers," said Luis Basterra, Argentina’s minister of agriculture, livestock and fisheries.

The USDA said there were concerns that the government might be trying to prevent unified farm resistance by dividing groups by farm size.

weekly drop (11.6%) since the global financial crisis in October 2008. It quoted Sime Darby Plantation as saying that demand from China had virtually "dried up" while Golden Agri-Resources said sales to China could slide by up to 20% due to weaker demand in the food sector.

Malaysian palm oil futures jumped due to concerns that plantations had to shut for two weeks to comply with government orders to curb the spread of Covid-19, S&P Global Platts reported on 18 March.

However, they fell again when the government confirmed that the industry could continue operations.

There had been fears that the industry could face a potential loss in crude palm

oil supply of around 708,500 tonnes and that fresh fruit bunches would over-ripen, raising their free fatty acid levels.

Meanwhile, Indonesian farming ministry officials said the country’s palm oil exports to China had declined due to a drop in demand, Reuters reported on 17 February.

Data from Indonesian farming ministry officials showed that palm oil exports from Indonesia totalled 84,000 tonnes up to 17 February compared with 371,000 tonnes for February last year.

“Coronavirus is having some impact on our exports,” said Kasdi Subagyono, the Indonesian farming ministry plantation director general. “But this is only for China.

As a whole, exports have still increased.”

Cargill to launch plant-based patties

Cargill's soya and pea-based patties and ground 'meat' products marks its entry into the plant-based sector (Stock photo)

US agribusiness Cargill is launching plant-based hamburger patties and ground ‘meat’ products using soya and pea protein in April, Reuters reported on 27 February.

The company’s entry into the plant-based sector challenges alternative meat firms such as Beyond Meat and Impossible Foods.

Cargill said its patties and ground products could be made into tacos, spaghetti sauce or other dishes. Retailers would also be able to sell the products under their own labels.

It planned to use its experience in handling ingredients and buying crops to produce the private-label products more efficiently than competitors, Reuters wrote.

“We believe we’re uniquely positioned to be very effective and efficient in the supply chain,” said Elizabeth Gutschenritter, managing director of Cargill’s alternative protein team.

Cargill’s portfolio would encompass both pea and soya formulations, she added.

North American pea protein producer Puris was a supplier to both Cargill and Beyond Meat.

Chinese soyabean imports rise in first two months of 2020 China's soyabean imports increased 14.2% year-on-year in the first two months of 2020 following the US-China trade truce, Reuters reported on 3 March 2020.

China bought 13.51M tonnes in January and February, up from 11.83M tonnes in the same two months last year, according to General Administration of Customs data.

Tariffs exemptions had been granted to some Chinese crushers to import US soyabeans although measures to contain the novel coronavirus (COVID-19) had affected

4 OFI – MARCH/APRIL 2020

General News.indd 2

operating rates, Reuters said.

At the same time, World Grain reported US agriculture secretary Sonny Perdue as saying that China had continued to make progress implementing its obligations under the US-China ‘phase one’ trade agreement signed on 15 January.

Perdue said China had taken several additional actions to meet its commitments including updating facilities approved for dairy, seafood, fish oil and fish meal exports.

Under the phase one agreement, China has agreed to buy an extra US$200bn in US goods over the next two years, including US$32bn of US agricultural products.

On 14 February, China halved tariffs on US$75bn worth of US imports, cutting levies of 5% and 10% on more than 1,700 items, including soyabeans, fresh seafood and poultry.

Washington also halved tariffs on US$120bn worth of Chinese goods to 7.5% on the same day.

www.ofimagazine.com

19/03/2020 14:48:09

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NEWS IN BRIEF WORLD: US food and drink giant PepsiCo is introducing stricter rules for the palm oil used in its goods – including a retrospective ban on working with firms with links to deforestation, Reuters reported on 25 February.

The company has pledged not to purchase palm oil from any direct or indirect supplier involved in deforestation. The new policy also applies to any of PepsiCo’s joint ventures.

The multinational would also be launching initiatives to stop human rights abuses among plantation workers.

PepsiCo said its goal was to ensure that “all our palm oil is free from deforestation, new developments on peatlands and exploitation of people.”

European food firms target palm oil hydrocarbon levels Several European food companies have asked top palm oil producers Indonesia and Malaysia to cut the amount of mineral oil hydrocarbons in their palm oil, Reuters reported on 18 February.

“They say hydrocarbons are found in our oils because of the way we process the fruits,” said Nageeb Abdul Wahab, chief executive of the Malaysian Palm Oil Association. “The lubricant we use sometimes comes into contact with our product. To address this issue, we have to use food grade lubricant, but the available options are very, very expensive.”

Industry officials told Reuters that food grade lubricants could cost 8-10 times more than their petroleum-based or synthetic counterparts and could hurt profit margins.

Swiss multinational food corporation Nestlé said it was actively monitoring its supply chain and working with suppliers on acceptable levels of mineral oil saturated hydrocarbons (MOSH)

and mineral oil aromatic hydrocarbons (MOAH) in agricultural raw materials.

“Although there are currently no regulatory requirements in place, our objective is to ensure levels of MOSH and MOAH are as low as feasibly possible in the ingredients that we source.”

Reuters said there were currently no European regulations on mineral oil hydrocarbons in food.

The news agency quoted sources as saying that the Malaysian Palm Oil Board was considering setting its own mineral oil hydrocarbon limit nationally.

Meanwhile, Indonesian palm oil producer Musim Mas said it had already switched to food-grade lubricants to address buyer concerns about contaminants.

“Customers’ concerns regarding hydrocarbon-based lubricants contaminating food sources are an increasing requirement for 2020,” a spokeswoman said.

Strong tropical oils performance boosts Wilmar's profits Leading Asian agribusiness Wilmar saw core net profits jump 120% to US$438.4M for the fourth quarter ended 31 December against US$199.4M in the same period last year, World Grain reported on 20 February.

The company attributed the results to its strong performance in Tropical Oils and Oilseeds & Grains.

Net profit for 2019 increased 15% to US$1.29bn, World Grain wrote.

Tropical Oils pretax profit for the fourth quarter increased 116% to US$287.3M, up from $134.1M in fourth quarter 2018. Pretax profit for

Oilseeds & Grains business jumped 61% to US$185.4M supported by improved crush margins and seasonal demand for consumer products.

Looking ahead, Wilmar

chairman and CEO Kuok Khoon Hong said that Tropical Oils’ performance for the coming year should benefit from higher palm oil prices.

“The current 2019 nov-

el coronavirus (COVID-19) outbreak has brought volatility to the commodity markets and further challenges to our operating environment, especially in China. At the moment, we do not expect a major impact on our businesses as we are mainly operating in the food products industry. Nevertheless, a prolonged outbreak of COVID-19 may have a greater impact on our operations.”

Headquartered in Singapore, Wilmar’s business activities include oil palm cultivation, oilseed crushing, edible oils refining, and production of speciality fats, oleochemicals and biodiesel.

Bunge offers to buy two Brazilian soya processing plants US agribusiness giant Bunge has placed a bid to buy two soya processing plants in Brazil from local soya crusher Imcopa, reinforcing its position as the country’s biggest oilseeds processor, Reuters reported on 18 February.

Two sources familiar with the transaction told Reuters that Bunge agreed to pay about BRL50M (US$12M) for the plants while assuming debt of around BRL1bn (US$225M) related to the assets, located 6 OFI – MARCH/APRIL 2020

General News.indd 3

in the state of Paraná.

In a statement, Bunge confirmed making a bid for the assets, adding that it was awaiting a court decision to continue with the process.

Bunge was the only company to submit a bid in the auction, according to one of the sources.

In a statement, Imcopa, now restructuring debt in a bankruptcy court, said it had received one offer for the plants but it did

not name the bidder.

Reuters said that as Brazil’s top oilseeds processor, Bunge’s latest move would help it expand a lead over rival Cargill. Cargill owned eight oilseed crushing units in Brazil and Bunge owned 12, according to 2018 data from national oilseeds group Abiove.

Imcopa said on its website that it had the capacity to crush 1.5M tonnes/year of soyabeans, producing up to 240,000 tonnes of soya protein concentrate. www.ofimagazine.com

19/03/2020 14:48:22

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NEWS IN BRIEF PAKISTAN: Prime Minister Imran Khan has pledged to buy more palm oil from Malaysia to help offset India’s curbs on Malaysian imports, Reuters reports.

Tensions between Hindu-majority India and Muslim-majority Malaysia have resulted from New Delhi’s new citizenship law offering amnesty to non-Muslim illegal immigrants, and its revoking of Indian-administered Kashmir’s special constitutional status last August.

On 8 January, India changed the import status of refined bleached and deodorised (RBD) palm oil and RBD palm olein from ‘free’ to ‘restricted’, meaning importers now require a licence for inbound shipments.

Malaysian Prime Minister Mahathir Mohamad said on 4 February that he had discussed palm oil with Khan, who was on a visit to Malaysia, and he had indicated that Pakistan would import more from the world’s second largest palm oil producer.

“That’s right, especially since we noticed India threatened Malaysia for supporting the Kashmir cause, threatened to cut palm oil imports,” Reuters reported Khan as saying. “Pakistan will do its best to compensate for that.”

Pakistan bought 1.1M tonnes of palm oil from Malaysia last year, while India bought 4.4M tonnes.

Obesity accounts for four million deaths worldwide

Obesity has nearly tripled since 1975 and now accounts for 4M deaths globally every year, according to a new World Bank report, 'Obesity: Health and Economic Consequences of an Impending Global Challenge'.

“Overweight/obesity is a time bomb ready to explode,” said the report, published on 27 January. “In 2016, over 2bn people globally (44%) were overweight or obese, and more than 70% of these live in lowor middle-income countries, dispelling the myth that obesity is a problem only in high-in-

come countries ... Further, 55% of the global rise of obesity is in rural areas.”

The report said 70% of countries currently faced a double burden: a high prevalence of both under-nutrition and obesity.

“Today, most of the countries with high levels of the double burden are found in Sub-Saharan Africa, South Asia, selected South East Asian countries (Indonesia being most prominent), and Guatemala.”

The report classifies adults with a body mass index (BMI –

weight/height squared) of 25 as overweight; and those with a BMI of 30 or more as obese, referring to the two as ‘obesity’.

Factors driving the rise in obesity rates globally included: • Rapid reductions in physical activity and access to labour-reducing technologies.

• The spread of modern food retailing and a changing food system, leading to diets with ultra-processed foods.

• Increased snacking and away-from-home eating.

• Increased country and household income.

Syngenta adds hemp to lobbying efforts Swiss crop protection and seeds producer Syngenta has added hemp to its lobbying effort, Hemp Industry Daily reported on 18 February.

Company officials said they were particularly interested in the US Environmental Protection Agency granting registrations for pesticides that can be used on industrial hemp.

Syngenta joins other companies with interests in hemp and cannabis. Global agribusiness Archer Daniels Midland started lobbying in 2019 and US crop protection firm Helena Agri-Enterprises has been lobbying on hemp and cannabis regulation issues since 2018.

The hemp plant is used to produce a wide variety of cannabidiol (CBD) oil and products, which are growing in popularity for medical, food and skin care applications. CBD is one of the two most common compounds found in cannabis, the other being tetrahydrocannabinol (THC), the compound responsible for a ‘high’.

Louis Dreyfus forms venture with China's Donlink group Global commodity giant Louis Dreyfus Company (LDC) is partnering with China’s Donlink Group to develop aquaculture and plant-based bioenergy production at a new food industry park near the southern port of Nansha.

The Nansha project would involve an investment of CNY7bn (US$1bn) and was expected to lead to annual production worth some CNY22bn, Global AgInvesting reported on 4 February. The joint venture would also involve feed protein processing and grain trading activities, LDC said.

Donlink’s operations include grain 8 OFI – MARCH/APRIL 2020

General News.indd 4

trading, international shipping and logistics, potash mining, potash fertiliser production and marketing.

LDC is one of the ‘ABCD’ quartet of companies – alongside ADM, Bunge and Cargill – that dominates world agricultural commodity trading including edible oils and oilseeds.

Global AgInvesting said tightening margins and volatile markets had exerted pressure on these firms to restructure and shift their focus to more downstream or higher margin activities.

LDC launched a cost cutting programme

late last year following a drop in profit it blamed on international trade tensions and African swine fever virus cutting demand for soyabean and grain feed in China.

In addition, for the first time in its 170year history, LDC is also prepared to sell an interest to an external investor.

Margarita Louis-Dreyfus, who consolidated control of the company through her Akira family trust and now owns 96% of the holding company, told Reuters at the end of January that she would consider selling a non-controlling stake to an investor that could bring capital and value to LDC. www.ofimagazine.com

19/03/2020 14:48:32

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Palm biofuel use may impact exports Indonesia is forecast to consume over 8M tonnes of palm oil this year to meet domestic demand for biodiesel, which may hit volumes available for export, the Jakarta Globe reported on 4 February.

“Domestic demand for palm oil in 2020 is estimated to reach 8.3M tonnes to be processed into biodiesel, which may heavily reduce the amount of palm oil available for export,” Indonesian Palm Oil Association (Gapki) executive director Mukti Sardjono said.

In January, the government began the mandatory use of B30 (comprising 30% palm biofuel and 70% diesel) and was also aiming to increase this to B40, the Jakarta Globe wrote.

The Indonesian Biodiesel Producers Association (APROBI) also said the trial use of

IN BRIEF SPAIN: Farmers unions are proposing that low quality lampante olive oil should be used as feedstock for biodiesel rather than paying for it to be stored until the market improves, the Olive Oil Times reported.

The global olive oil market had been disrupted by exceptionally high initial stocks of oil including last year’s huge yield in Spain, when 1.79M tonnes was produced.

In response, the EU launched a private storage scheme by providing subsidies to operators, Olive Oil Times said.

However, the unions said that paying for storage would simply prolong the oversupply problem while using it in biodiesel would solve it. The proposal is to use 600,000 tonnes of olive oil this way.

The Association of Renewable Energy Companies of Spain confirmed the plan’s feasibility provided the process covered the difference in price between olive oil and other oils, including soya and palm oil, currently used to produce biodiesel.

10 OFI – MARCH/APRIL 2020

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B40 fuel would start in March, the Jakarta Post reported on 11 February. APROBI chairman MP Tumanggor was reported by kompas.com as saying the new trial was in line with president Joko Widodo’s plan to implement B40 fully in January 2021.

As the world’s top palm oil producer, Indonesia is increasing domestic use of palm -based biodiesel to decrease dependence on international markets, reduce diesel fuel imports and maintain palm oil prices.

Gapki said expected favourable weather could boost the country’s palm oil output this year. Indonesia’s crude palm oil (CPO) and palm kernel oil (PKO) production hit a record 51.8M tonnes last year, up 9.1% from 2018, despite a long drought.

CPO production rose 9.4% to 47.2M tonnes and PKO production increased

8.6% to 4.6M tonnes in 2019 compared to 2018, Gapki figures showed. The country exported 36.2M tonnes of palm oil last year, up 4%, despite the adverse effects of the US-China trade war, Indian tariffs and the EU’s palm biodiesel ban.

As a result, CPO prices on the global market had been under pressure since the first half of last year. Gapki estimated the export value of palm oil products, including oleochemicals and biodiesel, had declined to US$19bn last year, down 17% from US$23bn in 2018.

The decline in export value could have been more severe but CPO prices recovered after President Joko Widodo announced that Indonesia would increase domestic use of CPO for biodiesel, the Jakarta Globe said.

ASTM approves new bio-jet fuel pathway

A new sustainable aviation fuel developed by US research and engineering company Applied Research Associates (ARA) and Chevron Lummus Global (CLG) has been approved by international standards organisation ASTM International.

The new production pathway, called ‘cata-

lytic hydrothermolysis jet’ (CHJ), was approved on 15 December and published in the revised ASTM specification for ‘Aviation Turbine Fuel Containing Synthesised Hydrocarbons’ on 29 January.

ASTM approval will allow the blending of up to 50% of ARA and CLG’s ReadiJet fuel with petroleum-derived jet fuel.

ARA said ReadiJet was produced via the two companies’ Biofuels Isoconversion process, which utilised hyrdrothermal conversion and hydrotreating technology to convert waste fats, oils and greases into jet fuel.

“The Biofuels Isoconversion technology is now set for scale-up in the USA and Japan,” ARA said. “In the USA, multiple commercial projects are in engineering and Euglena Corporation is working to start up its integrated Biofuels Isoconversion demonstration facility in Japan with the aim of delivering CHJ for commercial flights during the 2020 Olympic Games in Tokyo.”

Ukraine may lose corn, rapeseed exports to EU The Ukrainian Grain Association (UGA) has warned that the country could lose its corn and rapeseed exports to Europe due to the lack of greenhouse gas emissions (GHG) reporting by producers.

European biofuels regulations required the reporting of the whole GHG lifecycle on crops destined for biofuels production including cultivation, harvesting, storage and shipment, APK Inform wrote on 19 February. However, in the Ukraine, almost no reports existed apart from a 2017 GIZ-led study that showed Ukrainian

production exceeded EU thresholds, particularly for corn.

In contrast, competitors of Ukrainian agricultural producers – such as exporters of rapeseed from Australia and Canada – had already prepared reports on their volume of GHG emissions two years ago, which the European Commission had already approved, APK Inform said.

UGA’s executive director Serhiy Ivaschenko said if Ukrainian producers wanted continued access to the European biofuel market, they would need to reduce their GHG emissions. www.ofimagazine.com

17/03/2020 18:05:09

TRANSPORT NEWS IN BRIEF PANAMA: The International Chamber of Shipping (ICS) says ships may face 30% higher costs to pass through the Panama Canal once new charges and tolls are taken into account, Clean Shipping International reported on 13 February.

Ships passing through the canal from 15 February 2020 would face a ‘freshwater charge’, the Panama Canal Authority said.

Vessels over 38.1m long would incur a set charge of US$10,000 with a variable surcharge based on the level of the Gatun Lake at the time of transit.

From 1 April, significant changes to the canal’s tolls were also due to come into effect.

Sharp rise in low sulphur fuel sales at Rotterdam The Port of Rotterdam has reported a sharp rise in demand for very low sulphur fuel oil (VLSF0) and biofuel bunkers as a result of new global sulphur emission regulations which came into force on 1 January.

In the last quarter of 2019, sales of low sulphur bunker oil with a maximum sulphur content of 0.5% (VLSFO) showed a large increase and totalled 48% of all bunkers sold, the port said.

In December alone, 62% of the fuel sold was VLSFO. The International Maritime Organization’s new global sulphur regulation aims to reduce the amount of sulphur dioxide emissions from ships.

Since 1 January, the cap on sulphur emissions has been reduced from 3.5% to 0.5% in areas outside current emission control areas (Baltic Sea, North Sea, North America and US Caribbean), where the limit is even lower at 0.1%.

The Port of Rotterdam said sales of bunkers

with less than 0.1% sulphur content (ultra low sulphur fuel oil) comprised 13% of sales in the last quarter of 2019. In addition to increased sales of VLSFO, there was also a rise in sales of liquefied natural gas (LNG) bunkers, tripling from 9,483 tonnes to 31,944 tonnes.

“For the first time, the sale of biofuel bunkers – bunker fuel to which a certain percentage of biofuel has been added – is also clearly visible in figures.

“During 2019, 2% of sales of fuel oil and 0.5% of distillates (marine gas oil - MGO - and marine diesel oil - MDO) involved biofuel bunkers. Sales of biofuel bunkers showed an increase, particularly in the fourth quarter.”

The percentage of biofuel in bunkers varied between 5-50%, with 20-30% the most common, the port said, adding that the bulk of bunkers sold in Rotterdam was for intercontinental transport.

Diamond Green Diesel strikes lease deal with IMTT US renderer Darling Ingredients announced on 25 February that its Diamond Green Diesel (DGD) joint venture with Valero Energy had entered into a long-term lease agreement with bulk liquid handler International-Matex Tank Terminal (IMTT).

“The agreement will allow DGD access and use of the St Rose IMTT terminal as a logistics hub for DGD’s existing and expanding renewable diesel facility in Norco, Louisiana,” Darling Ingredients said.

As part of the agreement, IMTT will build two 8km long pipelines connecting its St Rose terminal with DGD’s Norco facility. IMTT will also

repurpose approximately 790,000 barrels of existing storage capacity from heavy and residual petroleum service to storage of renewable diesel feedstock and finished product. The work is expected to be completed before the

end of 2021, coinciding with the planned start-up of DGD’s current 400M gallon (1.52M tonne) expansion project.

“What is so often overlooked when discussing the critical success components of renewable diesel econom-

ics is the supply chain, which is complicated and costly to manage,” said John Bullock, executive vice president at Darling Ingredients. “This agreement allows us to economically source renewable diesel feedstock while supplying the best markets for our renewable diesel and naphtha.”

Darling Ingredients collects and processes animal by-products such as edible fats and yellow grease, as well as used cooking oil, into food, fuel, pet food, pharmaceutical and fertiliser ingredients.

IMTT handles and stores bulk liquid products through its ownership and operation of 19 terminals in North America.

Queensland Bulk Terminals now under full Wilmar ownership Leading Asian agribusiness group Wilmar International has become the sole owner of Australia-based Wilmar Gavilon (WG) and Queensland Bulk Terminals (QBT).

Wilmar acquired the 50% interest in WG which it did not already own for US$36.6M from Gavilon Pty Ltd, it said on 28 February.

“The acquisition was undertaken as Wilmar believes that significant synergies can be achieved with the integration of 12 OFI – MARCH/APRIL 2020

Transport news.indd 2

WG’s operations into Wilmar’s businesses in Australia and New Zealand.”

WG sources, trades, markets and distributes agricultural commodities including grains, oils, meals and fats. Once the deal is completed, WG will be a wholly-owned subsidiary of Wilmar known as Wilmar Trading (Australia) Pty Ltd, along with WG subsidiary, QBT. QBT handles and stores a range of grains

and liquids including maize and tallow. It has more than 85,000 tonnes of bulk grain storage, over 10,000 tonnes of bulk liquid storage, two grain receiving stations, a container packing facility and a ship loader.

Wilmar’s global activities include oil palm cultivation; oilseed crushing; edible oil refining; production of speciality fats, oleochemicals and biodiesel; as well as rice and flour milling and sugar milling and refining. www.ofimagazine.com

19/03/2020 10:50:59

BIOTECH NEWS

Bayer and BASF lose dicamba trial A jury has awarded US$265M to a Missouri peach grower in his lawsuit against herbicide producers Bayer and BASF in the first US case on dicamba-based weedkillers, with at least 140 similar cases due before the courts later this year, Reuters reported on 16 February.

Bill Bader sued the two German chemical firms, alleging that repeated dicamba exposure drifting from

nearby soyabean and cotton farms killed or weakened the fruit trees on his 1,000-acre orchard, beginning in 2015.

A jury in the US District Court in Cape Girardeau awarded Bader US$15M in actual damages and US$25M in punitive damages, with Bayer and BASF held equally liable.

Bayer is already facing around 42,700 cancer lawsuits in the USA over its Roundup glyphosate-based herbicide,

made by US biotech firm Monsanto, which it acquired for US$63bn in 2018.

Bayer and BASF now faced other dicamba lawsuits that could begin later this year, Reuters said.

Both companies said they planned to appeal the verdict, adding that dicamba-based herbicides were safe when used as directed.

In October 2018, the US Environmental Protection

ADM increases non-GM soya protein output Global agribusiness company Archer Daniels Midland (ADM) is increasing production of non-genetically modified (GM) soya protein concentrate at its facility in Europoort, the Netherlands.

The Europoort facility recently starting producing the concentrate, which is available

as a powder and is suitable for all types of food applications.

Speaking about the move, George Perujo, product management EMEAI, ADM Human Nutrition, said: “With more consumers adopting a flexitarian diet, the need for plant-based solutions continues to grow in Europe.

“And besides being conscious about sourcing, Europeans are more likely to pay attention to the non-GMO status of their ingredients, so European origination and production was an important factor when we were considering options for this expansion.”

Agency extended dicamba’s registration for two years, but with additional restrictions on the product.

Progressive Farmer wrote at the time that off-target dicamba injury had affected 24 states in 2017, with farmers complaining that dicamba drifted away from where it was sprayed on biotech soyabeans and cotton to neighbouring plants not genetically engineered to resist it.

IN BRIEF CANADA: Seed and crop protection company Corteva Agriscience, agribusiness giant Bunge and ingredients manufacturer Botaneco announced in January that they were investing over US$20.48M in seed genetics to improve the protein content of Canadian canola.

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Biotech news.indd 2

PRIMORIS Belgium Technologiepark 90 9052 Zwijnaarde (BE) OFI – MARCH/APRIL 2020

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17/03/2020 12:15:03

RENEWABLE NEWS IN BRIEF ITALY/USA: NextChem, a subsidiary of Italy’s Maire Tecnimont Group, and US-based Saola Energy have formed an alliance to produce renewable diesel, suitable for both small bolton facilities and large plants.

The companies will work together to license a technology for the production of renewable diesel (hydrotreated vegetable oil or HVO) from vegetable oils and residual fats.

NextChem will be the licensor of the combined technology and will provide clients with engineering, procurement and construction services and training.

Saola Energy’s patented technology consists of a hydrotreatment step followed by isomerisation.

THE NETHERLANDS: Dutch renewable chemicals company Avantium has announced it will build its furandicarboxylic acid (FDCA) flagship plant at Chemie Park Delfzijl, Bio Market Insights reported on 13 January The 5,000 tonne facility will produce plant-based FDCA – a key building block for many chemicals and plastics such as polyethylene furanoate (PEF).

The plant will be located near the company’s demonstration plant for plant-based mono-ethylene glycol (MEG) and its pilot biorefinery.

Elevance sells biorefinery stake back to Genting Malaysia’s Genting Plantations Bhd (GENP) is buying back a 25% stake in a planned biorefinery plant from US technology partner Elevance Renewable Sciences, the Star newspaper reported on 12 February.

GENP had planned to convert a 200,000 tonnes/year biodiesel facility at Sabah state’s Palm Oil Industrial Cluster in Lahad Datu into a high value palm oil derivatives producer using Elevance’s metathesis technology, the Star said.

However, Elevance had told GENP that it would not invest further in the 240,000 tonnes/year Genting Integrated Biorefinery (GIB) because it was restructuring. GENP therefore decided to buy back its 25% stake for RM64M (US$15.4M).

“Upon completion of the proposed transactions, GIB will become a wholly-owned subsidiary of Genting Plantations and will continue to hold the metathesis licence,” GENP said. “This will allow GIB the flexibility to pursue the metathesis plant in future.”

The Edge Financial Daily said the original aim of the partnership was to enable GENP to vertically integrate into value-added downstream activities,

reducing its dependency on the cyclical nature of its upstream oil palm plantation business.

GENP owns 247,400ha of land and 11 oil mills in Malaysia and Indonesia.

Elevance uses a selective metathesis catalyst to derive speciality chemicals and olefins from natural oils, which can be used in a wide range of applications including detergents, coatings, personal care, chemicals and engineered polymers.

“Central to the Elevance biorefinery process is the cross metathesis of natural oils with light olefins, such as 1-butene, to yield a series of higher-value speciality intermediates,” the company said on its website. “Metathesised triglycerides (mTAGs) are truncated versions of the natural oil feedstock. Following separation of renewable olefin co-products, mTAGs are further converted into novel mid-chain length unsaturated methyl esters using standard oleochemical processes.”

Elevance currently operates a 180,000 tonne/ year joint venture biorefinery with Asian agribusiness group Wilmar International in Gresik, Indonesia. The plant was commissioned in 2013 and uses palm oil and palm olein as feedstocks.

Lipase enzyme sourced from mustard oil cake

Scientists from the UK and India have recycled the by-products of mustard oil production to develop an enzyme that can be used in commercial laundry detergents, Labiotech.eu reported on 27 February.

“Oil cakes that are the by-products of oil extraction have a protein content of 30-40%,” explained Pattanathu Rahman, a microbial biotechnologist from the centre of enzyme innovation at the UK’s University of Portsmouth. “We used those oil cakes as a feedstock for bacteria to produce industrially-important lipase enzymes.”

Labiotech.eu wrote that the use of lipases in laundry detergents was rising because there were more eco-friendly than their phosphate-based counterparts and had a better ability to remove oil stains without harming the texture of clothing.

Eni plans 5M tonnes of palm oil free HVO capacity by 2050 Italian oil and gas firm Eni Spa plans to increase its bio-refining capacity to 5M tonnes/year as part of its long-term strategic plan to 2050, announced on 28 February.

The company currently produces around 1M tonnes/year of hydrotreated vegetable oil (HVO) using palm oil and waste feedstocks. It said it would gradually convert its Italian sites to reach 5M 14 OFI – MARCH/APRIL 2020

Renewable news.indd 2

tonnes/year of capacity, supplied exclusively with second and third generation ‘palm oil free’ feedstocks by 2023, seven years ahead of the EU’s ban on use of the oil in biofuel production. Target areas would be the Far and Middle East, Europe for biojet fuel production and the USA. Eni currently produces HVO, naptha, bio jet fuel and LPG at its 750,000 tonnes/year biorefinery in Gela, launched

in August 2019, and a 250,000 tonnes/ year plant in Venice, which began operations in 2014.

“The production of oil and gas is expected to reach a plateau in 2025,” said Eni CEO Claudio Descalzi. “The result will be a portfolio that is more balanced and integrated ... we have designed a strategy that combines economic and environmental sustainability.” www.ofimagazine.com

19/03/2020 10:54:35

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OFI – MARCH/APRIL 2020

15

DIARY OF EVENTS 19-21 April 2020

9-10 June 2020

14-15 August 2020

21-24 September 2020

Globoil International JW Marriott Marquis Dubai www.globoilinternational.com

International Grains Conference Congress Centre London, UK www.igc.int/en/conference/ confhome.aspx

Palmex Thailand 2020 ICC Hat Yai Songkhla Thailand http://thaipalmoil.com

Bio Impact Ag & Environment Conference Raleigh Convention Center North Carolina, USA www.bio.org/events/ bio-impact

10-12 June 2020

Palm Oil Trade Fair and Seminar (POTS) Kuala Lumpur Kuala Lumpur Malaysia http://mpoc.org.my/palm-oiltrade-fair-and-seminar-pots2020-announcement/

21 April 2020 Freight Traffic on Dnipro River Premier Palace Hotel Kyiv, Ukraine https://event.promgruz.com/ dniproshipping/en/ 21 April 2020 Palm Oil Trade Fair and Seminar (POTS) Philippines Philippines http://mpoc.org.my/palm-oiltrade-fair-and-seminar-pots2020-announcement/ 22-23 April 2020 Black Sea Grain Intercontinental Hotel, Kiev, Ukraine www.ukragroconsult.com/en/ conference/bsg2020 28-29 April 2020 5th European Symposium ‘Dietary Fat and Health’ Frankfurt, Germany https://veranstaltungen.gdch. de/tms/frontend/index. cfm?l=9072&sp_id=2 13-15 May 2020 ICIS World Surfactants Conference Hyatt Regency, New Jersey, USA www.icisevents.com/ehome/ index.php?eventid= 200191757& 27-29 May 2020 Grain and Maritime Days in Odessa www.apk-inform. com/en/conferences/ grainmaritime2020/about 3-6 June 2020 EFPRA 2020 Congress Villamoura Portugal https://efpra2020algarve. com/contacts/ 16

OFI – MARCH/APRIL 2020

Diary March 2020.indd 1

3rd International Symposium on Lipid Oxidation and Antioxidants Vigo, Spain http://www.eurofedlipid.org/ meetings/vigo2020/pages/ vigo.html 15-17 June 2020 International Fuel Ethanol Workshop & Expo Minneapolis Convention Center, USA http://fuelethanolworkshop. com/ 17 June 2020 Palm Oil Trade Fair and Seminar (POTS) China China http://mpoc.org.my/palm-oiltrade-fair-and-seminar-pots2020-announcement/ 17-18 June 2020 Future of Biofuels Copenhagen Denmark https://fortesmedia. com/future-of-biofuels2020,4,en,2,1,5.html 22-24 June 2020 POC 2020 – Palm & Lauric Oils Price Outlook Conference and Exhibition Kuala Lumpur, Malaysia www.pocmalaysia.com 24-25 June 2020 Oleofuels 2020 Marseille, France www.wplgroup.com/aci/ event/oleofuels/

18-19 August 2020

2-3 September 2020

23-25 September 2020 Globoil India 2020 Renaissance Mumbai Convention Centre Hotel India www.globoilindia.com 29-30 October 2020

7th High Oleic Oils Congress Toulouse, France http://higholeicmarket.com/ hoc-2019/

4th ICIS Pan American Oleochemicals Conference Miami, USA www.icisevents.com/ehome/ panamoleochemicals/home

6-11 September 2020

2-4 November 2020

FOSFA Basic Introductory Trade Education Course Royal Holloway University of London, UK www.fosfa.org/events/ basic-introductory-tradeeducation-course/ 8-9 September 2020 OFIC 2020 Kuala Lumpur Malaysia http://mosta.org.my/events/ ofic-2020/ 16-18 September 2020 The 9th ICIS European Surfactants Conference Amsterdam the Netherlands www.icisevents.com/ ehome/index. php?eventid=200188513& 17 September 2020 Black Sea Oil Trade Fairmont Grand Hotel Kiev, Ukraine www.ukragroconsult.com/en/ conference/bso2020

World Bio Markets Passenger Terminal Amsterdam, the Netherlands www.worldbiomarkets.com 12-13 November 2020 10th ICIS Asian Surfactants Conference Singapore www.icisevents.com/ehome/ asiansurfactants/contact_us/ 17-19 November 2020 Fabric and Home Care World Conference Shanghai, China www.aocs.org/attendmeetings/industry-events 2-5 May 2021 AOCS Annual Meeting & Expo Portland, Oregon, USA www.aocs.org/attendmeetings/industry-events 14-16 September 2021 oils+fats Munich 2021 Messe Munich, Germany https://www.oils-and-fats. com/index.html 17-20 October 2021

For a full events list, visit: www.ofimagazine.com

EuroFed Lipid Congress/Expo Leipzig, Germany www.eurofedlipid.org www.ofimagazine.com

19/03/2020 10:56:10

INTERNATIONAL MARKET REVIEW

The oils and fats market is trying to quantify the multi-layered implications of the current coronavirus pandemic. So far, the impact of Covid-19 has been almost exclusively bearish due to: • The threat of global economic recession, along with currency volatility, affecting consumer spending power and with it, demand for oils and meals around the world.

• Uncertainty over near-term demand from China, which accounts for nearly 20% of world vegetable oil consumption.

• A slowdown in the ‘return to normal’ for US soyabean exports that were picking up in the wake of US President Trump’s ‘phase one’ trade agreement with China.

• The collapse of energy markets, questioning the recently-promised fast expansion in biodiesel use of vegetable oils, potentially depressing palm, rapeseed/canola and soya oils as well as maize (45% of US corn consumption goes to ethanol). Ironically, crude oil appeared to be heading in the opposite, upward direction earlier in the year amid US/Iranian hostilities.

• Potential obstacles to the movement of commodities which, amid restrictions on people’s movement, could carry bullish as well as bearish risk.

Commodities and ‘macro’ markets are behaving in shock mode as we went to press, aware that answers to the questions of duration and depth of these and other multiple impacts are possibly many months away. For the oilseed complex some key losses at this point (from the start of 2020) include Malaysian palm oil futures (down 33%), Chicago Board of Trade (CBOT) soya oil (–28%), CBOT soyabeans (–12.6%) and EU rapeseed (–17%).

Prior to the coronavirus scare, politics had been heavily influencing trade, notably a political feud disrupting palm oil flows between key trading partners Malaysia and India, just as US soya trade with China seemed to be normalising.

As the leading internationally traded oil, palm had been the key driver to the upside over much of the period since our last review. Extending the rally it began mid-2019, crude palm oil (CPO) on the Bursa futures market in dollar equivalent www.ofimagazine.com

John Buckley.indd 2

Turbulent times for commodities

Source: John Buckley

The coronavirus outbreak has many implications for the oils and fats market in the months ahead John Buckley

Figure 1: Malaysian palm oil futures prices (US$) had reached US$770 levels at the turn of the year as traders believed production would slow down or stall after earlier dry weather and reduced input use.

That threat was accompanied by forecasts that key producers would add a few million tonnes of demand to their domestic biodiesel programmes. Top palm importers India and China were also revealed to have made steep increases in their 2019 imports for food use while third largest customer Europe had not yet cut demand as feared.

However, ideas that palm might be heading for even higher prices were quickly scuppered as the New Year unfolded. India and Malaysia had fallen out over the latter’s stance on Kashmir and India’s new citizenship laws, resulting in Malaysian sales to its top customer crashing, leaving rival supplier Indonesia to pick up a trade windfall.

This shift was partly enabled by India blocking refined palm olein imports from Malaysia but still allowing in over 1M tonnes from Indonesia. As China’s palm oil demand was questioned by coronavirus, Europe continued to import less and energy markets continued to weaken.

Palm oil stocks fell to new lows but more slowly than expected and the inflated price quickly returned to the low US$500s – its steepest drop for some years.

One question was whether Malaysian palm exports would pick up from their January/February lows after a near 30% fall. Pakistan and some other buyers had been taking more and early reports suggested March and April Malaysian trade was looking more promising, partly due to the approach of stocking up for Ramadan and partly a general consumer response to much cheaper prices.

A change of Malaysian prime minister also appears to have opened the door to a calmer relationship with India that may help restore palm trade. On the downside, Indian refiners continue to demand their government curb olein imports to protect their margins and avoid discouraging domestic oilseed farmers.

Malaysia also announced full implementation of a 20% palm biodiesel programme to take up to 1.06M tonnes annually although where that stands amid sub-US$30/barrel oil is anyone’s guess.

Also bearish were new EU measures to restrict potentially harmful contaminants in refined edible oils which its producers say unfairly targets palm with lower limits than applied to competitor oils.

The market now waits to see if Asian palm oil production does slow in the first half of 2020 as some analysts have forecast. Dry weather and less fertiliser use take many months to work through to u OFI – MARCH/APRIL 2020

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19/03/2020 11:34:28

INTERNATIONAL MARKET REVIEW u yields and trade reports suggest the price rally encouraged many producers to start using more inputs again. But above all, the trade needs to see how demand shapes up under the coronavirus cloud.

Rising Latin American soya crop estimates are promising to compensate for last year’s lost US output but the latter’s farmers are also said to be planning their own comeback. Some United States Department of Agriculture (USDA) economists have been looking for a potential 10-12% recovery in this spring’s planted area.

The full weight of Brazilian competition from a potential 125M tonne crop has been postponed by wet weather slowing harvest and port loading but exports were expected to rocket from March, possibly doubling to as much as 10M tonnes, keeping them on track for a higher seasonal total.

Along with Argentina raising export duties, Brazil’s shipping delays allowed CBOT soya futures some respite from selling pressure linked to lack of Chinese demand for US beans under the ‘phase one’ deal and Argentina raising its own crop estimate to 54.5M tonnes.

China had been expected to contribute 28% to global soya crush and 58% to imports this season although that would still be less than in the peak 2017/18 period. Despite an Argentine crop shortfall in 2017/18, the Latin Americans have raised their shipments to China in recent years.

A restraint on the soya market has been weakness in the oil sector, under pressure from cheaper palm and plummeting energy markets. In addition, while record monthly US soya crush numbers have made for supportive headlines, these have masked the pileup of US oil stocks. US soyabean oil prices have consequently dropped back to the lows of mid-2019.

After a weak trend in early February, US soyameal futures held up better, partly due to less competition from top meal exporter Argentina. Against that, Latin American currencies are weak – the Brazilian Real reaching record lows versus the US dollar. This means cheaper as well as more soyabeans from Latin American suppliers.

The USDA has been forecasting higher US exports and more total use (including domestic) than last year. However, the projection for a seasonal average US soya oil price some 11.5% higher than last year’s may be questioned, as this is based on other oil price trends, especially that of now struggling palm oil.

18 OFI – MARCH/APRIL 2020

John Buckley.indd 3

Source: John Buckley

Soya supplies on the rise again

Figure 2: Crude vegetable oil prices other than refined palm (US$/tonne)

Falling demand for canola oil

Rapeseed continues to face stock drawdown in the wake of last year’s crop shortfalls but the extent of the deficit depends on uncertain demand from top importer China and the EU biodiesel industry’s response to collapsing energy markets. Overall, the recent USDA prognosis was for global rapeseed oil consumption to drop from over 29M tonnes in 2017/18 to under 28M this season, some of that loss to be filled by larger sunflower and soya oil supplies.

In tandem with other markets, EU rapeseed went into a steep downturn as coronavirus fears escalated in early March.

Although EU oil consumption is down again, rapeseed imports have rocketed by 40% for the season to date to offset last year’s poor crop.

European grain lobby Coceral estimated the next harvest could be marginally up rather than down as initially thought.

However, it would still be among the lowest in recent years after last autumn’s rains delayed and downsized planting intentions. Lost acreage has been the main cause of poor French and UK outlooks but Germany’s crop could be up by over 10% as unusually mild weather spared crops from frost damage. EU imports are expected to stay large in 2020/21, led by supplies from Ukraine, where another promising crop appears to be in the ground.

The Winnipeg market also eased into the corona meltdown period, having held up better than soya for most of the first quarter on strong Canadian crush, offsetting weaker exports to China.

Canada’s total exports were recently estimated at 4.7M tonnes for the season to date, down about 500,000 tonnes year-on-year. However, domestic use jumped 13% to 5.5M tonnes.

Environmental protests over a new oil pipeline have held up Canadian

export flows and there are concerns that coronavirus might delay normalising trade to former top outlet China.

The slump in palm oil prices also weighs on ‘oil-rich’ rapeseed along with the energy market collapse. However, even with still ample old crop supplies, bellwether Winnipeg futures have, so far, suffered relatively modest losses for the year to date.

However, by the end of the season, lower carry-outs in both Canada and Europe are expected to reduce the world 2019/20 ending stock to a low 6.5M tonnes – about 2M tonnes down on the year. Going forward, much will depend on how much Canada sows this spring and on how quickly Australia can recover from the past year’s devastating droughts and heat-waves. The Australian government forecaster Abares recently lifted its forecast for the coming crop to 2.3M tonnes but this remains well down on the historical norm.

Better sunflower oil supplies

Sunflower oil supplies are looking good after big increases in Russian and Ukrainian harvests and a decent crop in Europe as well. Global sunflowerseed production is now estimated at around 54.8M tonnes against last year’s 50.6M tonnes and supplies of the oil are seen rising by about 1.4M tonnes to a new record 20.8M tonnes.

Russian analyst Sovecon recently suggested the country’s sunflowerseed exports could be 200,000 tonnes higher than expected at 1.2M tonnes. Ukrainian exports of sunflower oil have meanwhile rocketed by 63% to some 2.48M tonnes.

Global demand was recently estimated to be growing at an above-trend 7.5% as consumers respond to the relatively lower prices large supplies have enabled.  John Buckley is OFI’s market correspondent www.ofimagazine.com

19/03/2020 11:34:31

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1/28/202020 11:13 AM OFI – MARCH/APRIL 19

OLEOCHEMICALS

7

Oils & Fats Conference – London, England

Moving downstream There is a wide range of choices for palm oil operators wishing to move downstream into oleochemical derivatives.

What are the most promising products, their applications and the production processes involved?

Thomas Blocher The move downstream from basic oleochemicals (oils, fatty acids and glycerine) to derivatives can seem quite alluring. It seems as if almost everyone is doing it these days, either through acquisitions or internal development.

Moving into derivatives can lead to new customers, the capturing of additional revenue from existing customers and higher utilisation of raw materials.

However, as with any important decision, especially one that impacts on a company’s strategic focus, the 20 OFI – MARCH/APRIL 2020

Oleochemicals.indd 2

ramifications of the decision should be thoroughly investigated to avoid, or properly plan for, possible risks.

Myriad choices

There are myriad choices when it comes to oleochemical derivatives and deciding which to produce can be challenging.

An obvious first step might be to move into downstream commodities such as detergent alcohols – these technologies are usually well known and the transition to the new technology may not be such a big leap. The market size is easier to estimate and supply chains can be a little more transparent.

But what will your competitive advantage be that will lead customers to buy from you? Higher product quality, lower costs (perhaps due to a more advanced technology) or perhaps superior technical service? Perhaps you can fill demand by being the only manufacturer in your country or region.

Moving into specialities is also an option. These include pharmaceutical actives and speciality ingredients for cosmetics, among others. The sales of specialities often yield higher margins.

But while specialities can command higher prices, they can often require a higher level of technology, application experience, safety requirements and new raw materials.

Commodities and specialities both have their advantages and disadvantages and moving downstream at all carries risks.

With this in mind, Buss ChemTech has developed a simplified road map of oleochemical derivatives including some of the products that can be made from palm fatty acids and their related technologies (see diagram above).

Ethoxylates

Ethoxylates are non-ionic surfactants with applications in numerous markets including personal care, biotechnology, pharmaceuticals, oil-well, food, agriculture, textiles and coatings.

They can be used as detergents (in laundry and surface cleaners); emulsifiers (in emulsions, creams and ointments); wetting agents (for adhesives, paints and coatings and electroplating processes); dispersants (for pigments and crop protection and other biocides); stabilisers u (emulsion polymers) and as corrosion

www.ofimagazine.com

18/03/2020 14:54:09

BIODIESEL Options to purify feedstock } Acid Degumming } Fatty Acid Stripping } Nano Neutralisation Options to utilize high FFA feedstocks } Acid Esterification } Glycerolysis } Esterified Product Neutralization

In more than 40 years, Desmet Ballestra has installed over 400 oleochemical and biodiesel plants worldwide

Biodiesel Plant } Oil Drying } Transesterification } Glycerine Separation } Methyl Ester Washing } Methyl Ester Drying } Glycerine Purification } Glycerine Concentration } Methanol Rectification Options to further enhance biodiesel quality } Methyl Ester Prewashing } Methyl Ester Clarification } Methyl Ester Distillation Option to further enhance glycerine quality } Glycerine Distillation

OLEOCHEMICALS Fatty Acid Processing Plant } Fat Splitting } Fatty Acid Distillation } Fatty Acid Fractional Distillation } Fatty acid Hydrogenation } Fatty Acid Dry Fractionation } Sweetwater Treatment } Sweetwater Concentration } Glycerine Distillation Fatty Alcohols (Johnson Matthey Davy Technologies) } Fatty Acids Esterification } Methyl Ester Hydrogenation } Fatty Alcohol Refining } Fatty Alcohol Post Hydrogenation } Fatty Alcohol Fractional Distillation Fatty Acids Methyl Ester Process Plants } Methyl Ester Fractional Distillation } Methyl Ester Hydrogenation

Oleochemicals & Biodiesel

Science behind Technology

OLEOCHEMICALS The advantages of palm fatty acids Palm oil serves as an important feedstock for oleochemicals, with Malaysia and Indonesia being the dominant producers of fatty acids and fatty alcohols in Southeast Asia.

Palm oil chiefly comprises palmitic acid C16 (44–45%) and oleic acid, C18:1 (39–40%), along with linoleic acid, C18:2 (10–11%) and a trace amount of linolenic acid, C18:3. Palm kernel oil (PKO) is characterised by its high level of shorter and medium fatty acid chain lengths (mostly C12 and C14).

Over two thirds of oleochemicals derivatives are used in the manufacture of surfactants. With its ‘two for one’ nature, oil palm is a flexible feedstock for a variety of products that provides something for practically everyone: the longer fatty-acid chains preferred for liquid detergents or the shorter chains required by surface cleaners.

And unique in oleochemicals as compared to petrochemicals, the various sources of fatty-acids are often interchangeable. With the highest productivity of all crops, oil palm - if suitably (sustainably) managed - makes for one of the most efficient sources of feedstock for surfactants, one of the most important segments in the chemical industry. u inhibitors (in metal working fluids).

Typical oleochemical compounds that are ethoxylated are fatty acids, alcohols, amines, polyglycerol esters, triglycerides and sorbitan esters.

The sterotypical ethoxylation process involves treating a fatty alcohol with ethylene oxide (EO) and potassium hydroxyide (KOH) which serves as a catalyst. The reactor is pressurised with nitrogen and heated to about 150°C. Typically 2-9 units of EO are added to each alcohol for commodity surfactant or surfactant intermediates. For specialities, other starters can be used and the units of EO added can reach as high as 100.

A wide range of products are obtained as a result. The degree of ethoxylation generally determines the surfactant properties.

Narrow range ethoxylates With conventional catalysts such as KOH and sodium hydroxide (NaOH), a distribution of ethoxymers is obtained. For example, if a 9-mole ethoxylate is targeted using a conventional catalyst, a broad range of ethoxylates will result, with the degree of ethoxylation being anywhere from three to 30 moles of EO. A much tighter distribution can be obtained with narrow range catalysts.

Narrow range surfactants can be incorporated into alkyl ether sulfates or mixed with other anionic surfactants 22 OFI – MARCH/APRIL 2020

Oleochemicals.indd 4

and exhibit beneficial properties such as reduced irritation to skin/eyes and lower free alcohol content.

The catalyst and its method of addition are the key to achieving these narrow range compounds. The catalyst is typically a so-called ‘double metal cyanide’ type - a di-metal compound with a cyano group.

Methyl ester ethoxylates (MEE) This special narrow range ethoxylate was seen as a potential low-cost replacement for higher cost fatty alcohol feedstocks.

However, the market has not quite lived up to its promise yet. As with other narrow range ethoxylates, the catalyst plays a significant role, including how and when it is dosed. Original players in this area from 1990 were Henkel, Vista and Lion. Today, several others, including some large names in the chemical industry, also have the technology but none is as yet known to license the technology.

EHS considerations Ethoxylation poses some challenges the potential producer will need to consider: sourcing EO, the flammability of EO and the regulation of regulated by-products.

The challenges of sourcing EO are well reported. Naturally, free capacity must be found in the quantity and location desired. Finding capacity should become easier with new crackers coming on line.

However, the shipment of EO is highly

regulated so unless your desired location is near an EO source, you may find significant challenges. Not only are new truck and rail routes rarely approved, even requests from new clients on existing routes are often rejected. Thus, potential producers must be prepared to consider locating their plant near an EO source.

EO is extremely flammable and its mixtures with air are explosive. When heated, it may rapidly expand, causing fire and explosion. EO in the presence of water can hydrolyse to ethylene glycol and form polyethylene oxide, which is eventually oxidised by air and leads to hotspots that can trigger to explosive decomposition. Each major technology supplier has its own safety procedures including nitrogen blanketing and designing equipment to withstand an explosion.

As a byproduct of the ethoxylation process, dioxane can contaminate cosmetics and personal care products such as deodorants, shampoos, toothpastes and mouthwashes. It is irritating to the eyes and respiratory tract and exposure may cause damage to the central nervous system, liver and kidneys.

And since dioxane is highly soluble in water, it does not readily bind to soils but readily leaches to groundwater. It is also resistant to naturally-occurring biodegradation processes. Due to these properties, a dioxane plume is often much larger than the associated solvent plume. Stripping and other methods are used to reduce the amount of dioxane to acceptable levels.

Fatty amines

Another class of oleochemical derivatives are fatty amines and the chemical products derived from them. They are used in many industries including cosmetics, mining, agriculture and pharmaceuticals. Fatty amines can be subclassified as nitriles; primary, secondary and tertiary amines; diamines; and quaternary ammonium salts.

These last can maintain the properties of the underlying amine but increase the water solubility. Amine salts are useful as flotation agents, corrosion inhibitors and lubricants. The single largest market use for quaternary fatty amines is in fabric softeners. Another significant use for dialkyldimethyl quaternary ammonium salts and alkylbenzyldimethylammonium salts is in preparing organoclays for use as drilling muds, paint thickeners and lubricants. Betaines or speciality quaternaries, are used in the personal care industry in shampoos, conditioners, foaming and wetting agents.

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OLEOCHEMICALS Important uses for diamines include products for corrosion inhibitors, gasoline and fuel oil additives, flotation agents, pigment wetting agents, epoxy curing agents, herbicides, and asphalt emulsifiers.

Fatty amines and derivatives are widely used in the oil field. In the mining industry, amines and diamines are used in the recovery and purification of minerals. A major use of fatty diamines is as asphalt emulsifiers. Diamines have also been used as epoxy curing agents, corrosion inhibitors, gasoline and fuel oil additives, and pigment wetting agents.

A major use for ethoxylated and propoxylated amines is as an anti-static agent in the textile and plastics industries.

Examples of uses for amine oxides include detergents, personal care, as a foam booster and stabiliser, or as a dispersant for glass fibres.

Amine production Fatty amines are commonly prepared from fatty acids. The overall reaction is sometimes referred to as the nitrile process and begins with a reaction between the fatty acid and ammonia at high temperatures (>250°C) and in the presence of a metal oxide catalyst (such as alumina or zinc oxide) to give the fatty nitrile. The fatty amine is obtained from this by hydrogenation with any of a number of reagents, and typically a Raney nickel, cobalt or copper chromite catalysts.

When conducted in the presence of excess ammonia, the hydrogenation results in primary amines. In the absence of ammonia, secondary and tertiary amines are produced.

Alternatively, tertiary fatty amines can be generated directly from the reaction of fatty alcohols with alkylamines. The tertiary amines are precursors to quaternary ammonium salts.

More recent developments include continuous hydrogenation, although the process can be a little trickier and the catalyst concentration often needs to be altered. However, there are advantages in terms of equipment size (with a smaller reactor), consumption (less catalyst and energy consumption) and consistent product quality.

A combination of a high performance reactor and highly active catalyst can also achieve low iodine values during hydrogenation, in continuous as well as batch modes. And chrome-free catalysts for tertiary amine production are beginning to come onto the market in response to the tightening regulations of Chrome VI.

Fatty acid chlorides

The next class of oleochemical derivatives

to consider are the acyl or fatty acid (FA) chlorides. These are used in a few markets such as surfactants, pharmaceuticals and crop protection.

The importance of acid chlorides in preparative work is well known to chemists. Stearoyl chloride, for example, has many uses, among them the preparation of substituted imides, amides and acid anhydrides, the esterification of alcohols and the synthesis of organic compounds.

An older method to produce fatty acid chlorides is to react dry hydrogen chloride with isopropenyl stearate in solution or in the molten state to form high purity stearoyl chloride. The acid chloride is formed by the displacement of acetone from the isopropenyl stearate.

A more recently developed route commercialised in the past decade is the chlorination of the fatty acid through a reaction with phosgene. This colourless gas is very toxic but it is a valuable industrial reagent and building block in synthesis of pharmaceuticals and other organic compounds.

Due to the obvious safety concerns, phosgene is often produced and consumed within the same plant. Thus, companies considering the production of fatty acid chlorides should either have access to phosgene via pipeline or be prepared to produce phosgene themselves.

Industrially, phosgene is produced by passing purified carbon monoxide and chlorine gas through a bed of porous activated carbon, which serves as a catalyst.

The reaction is exothermic so the reactor must be cooled. Typically, the reaction is conducted between 50150°C. Besides the obvious need for robust safety systems and

www.ofimagazine.com

Conclusion

The move downstream into oleochemicals derivatives can offer new markets, customers and additional revenue but also carries risks. Whether it be commodity or speciality derivatives, any move needs to be properly explored and the advantages and risks weighed up. The best choice usually leverages existing expertise, access to raw materials and current customer base. Your technology partner can assist you in evaluating your choices.  Thomas Blocher is the global business manager of reaction technology at Buss ChemTech, Switzerland

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sound reactor design, tight process control is also required to ensure acceptable catalyst life, reactor integrity and good, consistent product quality over the life of the unit.

State-of-the-art phosgene generators include features like secondary reactor containment, on-line product monitoring and separate process and safety control systems. A robust safety concept allows chemical companies to produce this versatile reagent and the downstream derivatives like fatty acid chlorides with peace of mind.

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SOYABEANS Composition Database. They also contain relatively large amounts of poly - and monounsaturated fats – the so-called ‘good fats’ - and are low in both carbohydrates and saturated fats.

Due to their high nutrition value, soyabeans are used to produce many different food items around the world.

Some of the most popular soya-based foods include soya sauce, soya milk, and protein substitutes such as tofu, tempeh and textured vegetable protein.

Major uses

Market review Soyabean is a versatile oilseed supplying both oil and meal to the global market, which has been disrupted by the ChinaUSA trade war, African swine fever affecting feed demand in China and the outbreak of the novel coronavirus Ile Kauppila

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The last few years have been exciting for soya farmers and traders, but for all the wrong reasons. The soyabean market grew at a fantastic pace in the years leading up to 2017, with both the USA and Brazil reporting record harvests.

Then, in 2018, multiple events mostly centering around China and the USA threw the soya market into disarray, disrupting established trade patterns.

With soya being one of the most valuable farm crops in the world, the end result of such upheavals were felt far and wide, from producers to consumers.

But what exactly makes soyabean such a valuable commodity? The oilseed is a versatile legume and has a myriad of uses across a variety of sectors.

Most people probably consider soyabean a food, and human nutrition is indeed one of its major applications. Soyabeans are one of the best sources of plant-based proteins, with 16.6g of protein per 100g of beans, according to the United States Department of Agriculture (USDA) Food

However, on a global scale, soyabeans are much more financially important as an oil and meal. According to the American Soybean Association (ASA), one bushel – or slightly over 27kg – of soyabeans produces about 5kg of oil and 22kg of high-protein meal. Roughly 98% of the world’s soyabeans are processed into these two products.

Of the two, soyabean oil ties more closely into human food use. About 95% of the world’s roughly 56M tonne annual soya oil supply is consumed as edible oil.

It is a popular frying oil and is also used as an ingredient in, for example, baked goods and salad dressings.

Another popular use for soyabean oil is for biodiesel production which, for example in the USA, accounts for 25% of total soya oil consumption.

Soyabean oil is also used in a wide range of non-food industrial products, such as petroleum-free plastics, printing inks and even car parts. Soya-based industrial lubricants are preferred by some end users due to their high heatresistance and non-toxicity, says the North Carolina Soybean Producers Association (NCSPA).

Other possible uses for soyabeans include particle board production, biocomposite materials, and even nontoxic crayons that are safer for children to use. Research into soya-based products has picked up in the last decade, and new applications keep being discovered, particularly in the field of renewable alternatives to petroleum and oil products.

Finally, soya meal is used as an animal feed. Of the total global soya meal output of 238M tonnes, 98% is used for animal feed, from swine and cattle to poultry and pets. Soya meal is also becoming increasingly common in fish food, both in commercial aquaculture and home aquariums, to replace increasingly scarce fish meal, the NCSPA says.

The remaining 2% of global soya meal output is used mostly in human nutrition as soya flour and other proteins.

Some of the key global soya producers

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SOYABEANS include Archer Daniels Midland, Bunge, Cargill, DowDuPont and Louis Dreyfus.

Global production giants

Soyabean is among the top 10 most valuable agricultural products in the world, with an annual production of 358.28M tonnes in 2018/19, according to the USDA’s January 2020 report on global oilseed markets and trade.

Total global output grew by nearly 4.8% from 341.99M tonnes in the year before, although that year lagged behind 2016/17, when production was 349.99M tonnes. Out of 2018/19’s 358.28M tonne total, 307.2M tonnes or some 85.7% was produced on the American continent. There, the USA and Brazil stand as the world’s two largest producers of unprocessed soyabeans, responsible for more than 66% of the global total.

In 2018/19, the USA produced 120.52M tonnes of soyabeans, according to USDA estimates, equalling roughly 33.6% of global production. Its soya meal production was estimated at 44.28M tonnes, while its soybean oil output stood at 10.98M tonnes. In hectarage, the USA boasted 35.45M ha of planted area, giving a yield of 3.4 tonnes/ha.

Brazil, the global number two producer

in 2018/19, produced 117M tonnes of soyabeans, 32.96M tonnes of soya meal and 8.16M tonnes of soyabean oil.

Planted area in Brazil was ahead of the USA at 35.9M ha, but its yield stayed lower at 3.26 tonnes/ha.

However, partly due to the trade dispute between the USA and China and other factors, Brazil is poised to assume the role of the global soya leader in 2020.

The USDA projects US soyabean area to fall by more than 14% to 30.36M ha with a yield of 3.19 tonnes/ha. This would result in a 19.64% decrease in production, with an estimated total of 96.84M tonnes of soyabeans. Brazil, meanwhile, is expected to increase its planted area by 2.8% to 36.9M ha, with its total output growing 5.13% to 123M tonnes.

Argentina held the number three spot in 2018/19, although far below the USA and Brazil. Total Argentinian soyabean production in 2018/19 reached 55.3M tonnes, which marked a significant 46.3% increase from the 37.8M tonnes achieved in 2017/18. However, according to USDA predictions, such explosive growth cannot be sustained and the 2019/20 soyabean production is projected to remain 4.16% lower at 53M tonnes. Argentina’s soya meal production in 2018/19 stood at

31.2M tonnes and its soya oil output was 7.91M tonnes.

At number four position in global production is China, one of the places where the wild form of soyabean originates. In 2018/19, China produced 15.97M tonnes of soyabeans, USDA data shows. Its planted area stood at 8.41M ha, with a yield of 1.9 tonnes/ha.

However, moving over to meal and oil, China totally overshadows its competitors with a total soya meal output of 67.32M tonnes and oil output of 15.23M tonnes, far ahead of its nearest competitor – the USA. China is projected to increase its domestic production of soyabeans in 2019/20 to offset some of the effects of its trade disputes. Chinese soyabean hectarage is expected to grow by 10.5% to 9.3M ha, and its total soyabean output is poised to grow by 13.3% to 18.1M tonnes – the highest level the country has seen in 14 years, according to Reuters.

Behind China is India with a total soyabean production of 10.93M tonnes, which the USDA expects to fall by 17.6% to 9M tonnes in 2019/20. Further down the line, the global top 10 producers are made up of Paraguay, Canada, Ukraine, u Russia and Bolivia.

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SOYABEANS u

Leading world consumers

On the consumption side, China is the single largest consumer of soyabeans by a massive margin. China’s soyabean consumption has skyrocketed in the past 20 years, from less than 30M tonnes in 2000 to 102.2M tonnes in 2019, according to the USDA. In simpler terms, China consumes 28.5% – nearly one-third – of the entire global soyabean output. It is therefore no surprise that China is also the single largest importer of soyabeans at 85M tonnes.

China uses its soyabean imports to produce 67.32M tonnes/year of soyabean meal for animal feed, with more than half of the world’s pigs residing in China.

When it comes to soyabean meal and oil, China is almost self-sufficient, with production and consumption having remained at more or less equal levels for the past five years.

Behind China, the USA is the second largest consumer of whole soyabeans with a total consumption of 60.77M tonnes in 2019. According to the ASA, the US livestock feed industry is responsible for nearly all of the country’s soya meal consumption.

The world’s third largest consumer of soyabeans is Argentina, which in 2019 used 51.1M tonnes of soyabeans.

China and the USA are also the leading global consumers of soyabean meal and oil. In 2019/20, China is projected to consume 66.07M tonnes of soya meal and 16.29M tonnes of oil, while for the USA, these numbers stand at 33.39M tonnes and 10.66M tonnes, respectively.

The third largest soya meal consumer is expected to be the EU at 31.19M tonnes, while in soyabean oil, the third place is held by Brazil with a consumption of 7.35M tonnes.

Imports and exports

In exports of unprocessed soyabeans, Brazil is the leader with 74.95M tonnes exported in 2018/19 and a projected total of 76M tonnes in 2019/20. Behind Brazil are the USA (48.3M projected for 2019/20), Argentina (8.2M tonnes), Paraguay (6.2M tonnes) and Canada (5.74M tonnes). In soya meal exports, the leader is Argentina (30.85M tonnes), followed by Brazil (15.4M tonnes), the USA (11.98M tonnes), Paraguay (2.55M tonnes) and Bolivia (1.75M tonnes).

Finally, in soyabean oil, the export leader is again Argentina (6M tonnes), followed

by Brazil (1.1M tonnes), the EU (950,000 tonnes), the USA (771,000 tonnes) and Paraguay (710,000 tonnes).

China, as already mentioned, is the largest whole soyabean importer in the 26 OFI – MARCH/APRIL 2020

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‘The single largest event shaking the soyabean market in the past few years has been the US-China trade war’ world at projected total imports of 85M tonnes in 2019/20. This is followed by the EU, which is expected to take in 15.2M tonnes of soyabeans in 2019/20.

According to statistics from the European Commission (EC), in 2018/19, imports from the USA increased by 121% compared to the year prior, rising from 3.73M tonnes in 2017/18 to 8.24M tonnes. At the same time, Brazilian imports decreased by 31.9% from 3.5M tonnes to 2.39M tonnes.

US-China trade war

The single largest event shaking the soyabean market in the past few years has been the US-China trade war.

The economic conflict was kickstarted on 22 January 2018, when the administration of President Donald Trump imposed tariffs on Chinese solar panels and washing machines. In the following months, the two global superpowers exchanged tit-for-tat tariffs on nearly all imports coming to and going from each country. However, the one that shook the balance of the entire global soybean market was the 2 April 2018 decision by China’s Ministry of Commerce to impose a 25% tariff on US soyabean exports to China.

According to Reuters, by July 2018, the tariffs had brought US soyabean sales to zero. In December, President Trump claimed that China was looking to buy a “tremendous amount” of soyabeans but such sales never materialised and over the following six months US soyabean exports to China were only a quarter of what they were in 2017.

Other agricultural exports suffered greatly as well, and American Farm Bureau data shows that agri exports from the USA to China fell from US$24bn in 2014 to a paltry US$9bn in 2018. USDA data shows that in 2017/18, before the tariffs

on soya, US soyabean exports to China totaled 27.68M tonnes, but in 2018/19, only 13.37M tonnes were exported.

Increased exports elsewhere, including to the EU, were not enough to offset the sales lost in China. Reuters reports at the time painted a grim picture of the state of US agriculture – including soya farmers – with farm bankruptcies, low incomes and cancelled equipment purchases all around.

The US government has had to pay out significant subsidies to bail out its farmers, the cost reaching roughly US$28bn by early 2020, according to CNN reports.

But while the USA suffered, other countries reaped the profits as China turned elsewhere for its soyabeans. China’s own soyabean production is projected to be higher in 2019/20, but perhaps more importantly, the Asian economic giant increased imports from Brazil. According to Reuters, in 2018 China imported 12-14M tonnes of soyabeans from Brazil, up from 9M tonnes the year before.

The beginning of 2020 showed signs of the trade war slowing down. On January 15, Trump signed a deal with senior Chinese officials to enact what has become known as Phase One of a future US-China trade agreement.

In the January deal, China agreed to purchase US agri products – including soyabeans – worth an additional US$12.5bn in the first year and a further US$19bn in the second year under the plan. In return, the USA would reduce tariffs on US$120bn worth of Chinese products from 15% to 7.5%.

According to documents released from the White House outlining the deal, China’s imports of US agricultural products, including soyabeans and other products such as grains, meats, ethanol and cotton, would total at least US$80bn over the next two years.

In addition to increased farm purchases, the ASA said that the Phase One deal included improved regulatory processes for evaluation and authorisation of agricultural biotechnology products, improvements to sanitary and phytosanitary measures, and intellectual property protection for agriculture.

ASA president Bill Gordon was cautiously optimistic about the agreement, despite some experts voicing doubts about whether China will actually be able to meet its purchase commitments.

“This milestone moment in the negotiation process bodes well for de-escalation of the tension between our two countries and making further progress. Yet, as an industry, we have a lingering unease regarding the tariff on US soyabeans, which was not addressed in

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SOYABEANS this deal. China needs to take action, and, as a goodwill gesture, offer to remove its retaliatory tax on our soybeans,” he said.

ASF hits soya feed demand

As if the trade war would not have been enough on its own, another disaster surfaced in late 2018 that reduced China’s need for soyabeans.

An outbreak of the African swine fever (ASF) was first detected in China in August 2018 and spread like wildfire as both local farmers and officials were reluctant to report the disease, according to Forbes. The virus causing ASF is harmless to humans but lethal to pigs and, as a result, at least a quarter of China’s hog population perished.

According to Rabobank, China’s pork production has fell 25% in 2019 and will further decline in 2020.

Due to the massively lower number of pigs left alive, China’s need for soyabean-based pig feed naturally went down. Rabobank, in its Soybean Baseline published in September 2019, predicted that the ASF epidemic – combined with the US-China trade difficulties – would keep exports from the USA slow and global soyabean prices low. However, at the same time, Rabobank says that while China’s need for soya may fall due to ASF, other regions might step in to make up for the difference.

“While the spread of ASF reduces soyabean demand in some impacted regions, other regions may offset some of these losses as they ramp up their production of other animal proteins to cover the decrease in pork production from ASF or to export pork to regions heavily impacted by ASF,” Rabobank projects.

Indeed, by January 2020, the worst of the ASF could be over, and Rabobank says that China’s hog herd could end up making a small recovery during the year before heading into an even stronger 2021. For soyabean farmers this is good news, as more hogs need more feed.

Additionally, Rabobank projects that Chinese demand for other animal feeds, including poultry and aquaculture feed, would rise more strongly.

futures to fall for the longest consecutive streak since 2014, and that in January, soya prices were down 8.7% compared to December 2019, the largest monthly drop since June 2018 when the effects of China’s soya tariffs were first felt.

“The primary market concern is that fear of the virus will drag the global economy closer to a recession. China is basically shutting down its economy to get control of the virus,” Arlan Suderman, chief commodities economist at INTL FCStone, told Reuters.

As it stands, with the US-China Phase One deal and the slowdown of ASF in China, the global soyabean trade looks

set to get a small boost in the coming year. But uncertainties remain as the coronavirus continues to spread, and it would not be the first time in the past two years for relations between the USA and China to thaw slightly before plummeting into new depths of hostility.

Rabobank reflects this view in its 2019 soya baseline, concluding that the market is likely to remain depressed, unless the trade war and ASF are eliminated, in which case the projection is not all that bad.

As anticlimactic as it might be, all the market can do is wait and see how the situation develops.  Ile Kauppila is OFI’s former assistant editor

Coronavirus outbreak

But while ASF’s back might be broken, another disease broke out in late 2019.

China’s coronavirus epidemic has at the time of writing spread to all continents, with the WHO even declaring it a global emergency. This has affected the prices of agri products including soyabeans.

Reuters reported in late January that the novel coronavirus (Covid-19) had caused Chicago Board of Trade (CBOT) soyabean www.ofimagazine.com

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PLANT & TECHNOLOGY

Global round-up of projects

IN BRIEF CROATIA: Belgian engineering firm De Smet Engineers & Contractors (DSEC) has started working on an engineering project for a second generation ethanol plant in Sisak, near Zagreb, for Croatian oil and gas company Ina. The plant will use locally grown miscanthus and wheat straw as feedstocks.

DSEC said on 13 January that it would also integrate the selected process package in the overall project study and assess related capital and operational costs.

USA: The Greater Baton Rouge Port Commission approved a deal on 23 January which gives renewable fuels firm Greentech Materials a 90-day option to lease 66ha of land at the port to build a US$500M renewable fuels plant, reports the Advocate.

The deal gave Greentech three months to reach an agreement for an option on the land, located west of the Genesis Energy terminal at the Inland Rivers Marine Terminal.

Port executive director Jay Hardman said Greentech was planning to produce 8-9M barrels of renewable fuel from soyabean and palm oils that would be shipped by barge or rail.

Genesis produced 20-25M barrels/year of petroleum products at its Greater Baton Rouge terminal.

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Crown launches renewable diesel pretreatment system Oilseed extraction technology supplier Crown Iron Works has launched a new renewable diesel pretreatment system.

“By maximising contaminant removal, the new system delivers the cleanest possible feedstock to renewable diesel hydrotreaters,” Crown said in a press release on 15 January.

“Engineered to handle contaminants in feedstocks, the new system reduces phosphorus to <1ppm for vegetable oil feedstocks and tallows, and ensures the lowest levels of polyethylene, metals, chloride and other key contaminants.”

Crown said its system doubled hydrotreater catalyst life, helping to minimise downtime associated with catalyst changeovers.

“We’ve developed a ‘future-proof’ pre-treatment system that’s built to accommodate the widest variety of feedstocks and is easily adapted to suit industry

Crown’s double pass bleaching process (pictured above) is part of its renewable diesel pre-treatment system

and regulatory changes,” said Crown Global Companies general manager Bill Antilla.

“The new system meets renewable diesel industry standards, can be built to American Petroleum Institute (API) standards, and is adaptable to changing market requirements.”

Crown said renewable diesel operators could also

Photo: Crown Iron Works

Oils & Fats International reports on some of the latest projects, technology and process news and developments around the world

evaluate complex feedstock inputs and test contaminant removal technologies at its new innovation centre in Blaine, Minnesota, which opened last year.

Minnesota-based Crown is a division of CPM Holdings Inc and also has offices in Argentina, Brazil, China, Germany, Honduras, Mexico, Russia, the UK and Ukraine.

Fintoil to build new crude tall oil biorefinery

Crude tall oil is a by-product of softwood pulp production

Finnish biofuel producer Fintoil is investing €100M (US$108M) to build a crude tall oil (CTO) biorefinery in Hamina, Finland, Taaleri investment company announced on 4 February.

Fintoil, which is partly owned

by Taaleri, has signed a lease on a site in the Hamina oil port area for the plant.

Neste Engineering Solutions has been commissioned to build the biorefinery, with construction expected to begin at the end of 2020, subject to environmental and building permits. Production is expected

to start up in 2022.

More than 60% of the biorefinery’s output will be directed as feedstock to biodiesel production.

CTO is a by-product of softwood pulp production and the carbon footprint of CTO derivatives is up to 90% lower than that of comparable fossil alternative products, according to Taaleri.

Established in 2017, Fintoil refines CTO for second generation biofuel production and the chemicals, food and u pharmaceuticals industries. www.ofimagazine.com www.ofimagazine.com

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PLANT & TECHNOLOGY u

Clariant expands capacity at Yuncos site in Spain Swiss speciality chemicals company Clariant announced on 6 February that additional production capacity for activated bleaching earths at its Yuncos site in Spain (pictured) was now on stream.

“Our investment in Yuncos enables us to offer more high quality purification products and the on-hand expertise customers in the local edible oil and biofuels market require to optimise their products,” said Anil Sönmez, head of purification and functional absorbents, Europe/Middle East/Africa, at Clariant.

“This complements our

investments over the last three years in new and existing sites in France, Germany and Turkey.

Sönmez said with consumers around the world focusing more on healthier diets and the consumption of healthier cooking oils, high quality bleaching earths were in demand to remove unwanted impurities from refined oils.

“Particular attention is placed on minimising 3-MCPD levels, currently under scrutiny by the EU.” Rising interest in biofuel usage throughout the EU was also increasing demand for effective purification solutions.

Evonik increasing biodiesel catalyst production capacity in Argentina German chemical company Evonik will increase its production capacity for the biodiesel catalyst, sodium methylate, at its Rosario, Santa Fe facility in Argentina from 60,000 to 90,000 tonnes.

“The increased capacity will be built in two stages and is expected to be complete in 2021,” Evonik said on 3 December, adding that its expansion was being driven by soaring biodiesel demand in Argentina and Brazil and several recent production capacity additions in the region.

“Confirmed higher mandates in Brazil such as the biodiesel blend increase from 11% to 15% by 2023, but also the competitiveness of biodiesel exports from Argentina throughout the world, drive our decision,” said Marcos Salgueiro, general manager at Evonik’s functional solutions business line in South America.

“This is why we continue to invest in our plant, which is strategically located in the centre of the Argentinean soyabean



and biodiesel production region.”

Evonik said it was also investing in infrastructure and logistics improvements in South America, including expanded storage solutions to ensure continuous supply reliability. In addition to sodium methylate production in Argentina and the USA, Evonik said it also produced the biodiesel catalyst in NiederkasselLülsdorf, Germany, mainly for the European and Asian markets.

HollyFrontier to build renewable diesel unit US petroleum refiner HollyFrontier announced a new renewable diesel unit project at its Navajo refinery, USA, on 18 November.

“We expect our new plant will generate attractive returns and help us meet our requirements under the Renewable Fuel Standards,” Biodiesel Magazine quoted board chairman Franklin Myers as saying.

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The unit would have 568M litres/ year of production capacity and allow HollyFrontier to process soyabean oil and other feedstocks into renewable diesel.

The plant, along with corresponding rail infrastructure and storage tanks, would cost an estimated US$350M and was expected to be completed in the first quarter of 2022.

NDSP shelves soya crushing plant plan Farmer-owned company, North Dakota Soybean Processors (NDSP), announced on 12 February that it had called off plans to build a large-scale soyabean crushing facility at the Spiritwood Energy Park in North Dakota, USA. The NDSP spent more than three years, US$6M and thousands of hours of management time planning the facility but the Spiritwood Energy Park Association (SEPA) board voted in July 2019 to terminate the site contract.

Speaking about the decision, NDSP president Bruce Hill said: “Last week, NDSP agreed with SEPA to dismiss its lawsuit with prejudice, meaning its bid to build a plant at the Spiritwood site is over.

“We are not done in our efforts. Our plant and site engineering is portable, and our air permit can be amended and we intend to move forward with our efforts to bring the first farmer-owned soyabean crush plant to the state of North Dakota, it just won’t be at Spiritwood.”

The NDSP facility would crush 42M bushels/year of locally-grown soyabeans and produce approximately 848,217 tonnes of soyabean meal and 215,456 tonnes of soyabean oil for sale into the domestic and export animal feed and soyabean oil markets. NDSP is a whollyowned subsidiary of Minnesota Soybean Processors, a Minnesota cooperative which owns and operates a large-scale soyabean crush, feed and biodiesel production facility in southwestern u Minnesota. www.ofimagazine.com

19/03/2020 11:21:17

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31

PLANT & TECHNOLOGY u

Cargill invests to expand food pilot facility US agribusiness Cargill is investing US$6.4M to expand its food pilot capabilities at its North American pilot development centre in Savage, Minnesota.

The new facility will allow the edible oils business to conduct multi-scale, continuous piloting, starting with refining of new vegetable oils and blends and ending with shortening solutions for bread, cakes, cookies, frying and other uses.

Cargill said other food ingredients, including those used for confectionery products and infant nutrition, could also be piloted at the site.

IN BRIEF USA: Full production at the first commercial-scale D3MAX plant in the country is expected to be ramped up during first quarter 2020, Biodiesel Magazine reports.

Ace Ethanol would own and operate the plant in Stanley, Wisconsin, under license from technology firm D3MAX. D3MAX said an advantage of its corn fibre-to-ethanol technology was that the wet cake has been “cooked” or pre-pretreated in the ethanol plant, so pre-treatment could run at much lower temperatures and pressure, and milder pH conditions, reducing the cost of pretreatment equipment and operations.

INDIA: The government has launched an online portal allowing users to trace the source of used cooking oil (UCO), Biofuels Digest wrote on 1 January.

The Repurpose Used Cooking Oil project was announced in August 2019 to help increase UCO collection for biodiesel production as well as remove UCO from the food supply chain that could be hazardous to human health.

Currently, 11 plants across India could produce UCO biodiesel, with more expected, according to the Hindu Business Line.

32 OFI – MARCH/APRIL 2020

P&E NEW.indd 4

Speaking about the development, Florian Schattenmann, chief technology officer at Cargill, said: “It allows us to better partner with our customers to evaluate new raw materials, validate performance specifications and develop new products.”

Features of the new facility include a refinery pilot plant to create new oils and blends, a fats and oils crystallisation centre and a laboratory to analyse key fats and oil quality parameters.

Construction of the new facility started in April 2019 and it is expected to be fully

operational late summer 2020.

The new centre complements Cargill’s Minneapolis research and development centre and food innovation centre.

“Our expanded pilot facility and our food innovation centre together will allow us to more quickly respond to customer requests for samples and test their performance in bakery products,” said Sonia Punwani, global bakery category leader for Cargill’s edible oils business.

The new facility joins other pilot and food innovation facilities operated by the company in Belgium, China and Singapore.

Major palm oil producers fund public radar system to monitor deforestation Ten major palm oil producers and buyers are collaborating to support and fund the development of a publicly available radarbased forest monitoring system called Radar Alerts for Detecting Deforestation (RADD).

This partnership between Bunge, Cargill, Golden Agri-Resources (GAR), Mondelēz International, Musim Mas, Nestlé, PepsiCo, Sime Darby Plantation, Unilever and Wilmar would make it easier for companies and other stakeholders to see deforestation happening in near-real-time and with greater accuracy, Dutch food company Bunge Loders Croklaan (BLC) wrote on 1 November.

The RADD system was currently being developed for Indonesia and Malaysia, the world’s two largest palm oil producers.

Preliminary results indicated that the RADD system could detect tropical deforestation several weeks earlier than optical-based systems.

The alerts would be on the app Global Forest Watch, and the methodology behind the alerts would be published.

Developed by Wageningen University and Dutch firm Satelligence, and facilitated by World Resources Institute, the RADD system would augment existing publicly available monitoring tools that rely on satellite imagery,

which can be delayed when clouds obstruct the view of forests.

Through the use of radar waves, the new system can penetrate cloud cover and gather forest change information without being affected by clouds or sunlight.

“Throughout the RADD system development over the next two years, partner companies will receive alerts about detected deforestation events and will provide crucial feedback to improve the system,” BLC said. “The open nature of the system will enable companies – plus governments, civil society organisations and concerned stakeholders – to monitor forests using the same information source and standards.”

Phillips 66 and REG cancel renewable diesel project US energy provider Phillips 66 and US biodiesel producer Renewable Energy Group (REG) announced on 21 January that they were discontinuing plans to build a renewable diesel plant in Ferndale, Washington.

The project, originally announced in 2018, would have resulted in the largest renewable diesel refinery on the West Coast but had been cancelled due to permitting delays and

uncertainties, the companies said.

“While we believe the Ferndale refinery is a strategic fit for this renewable energy project, permitting uncertainties were leading to delays and higher costs,” said Phillips 66 executive vice president of refining Robert Herman.

“Phillips 66 continues to progress its portfolio of renewable diesel projects and evaluate new opportunities.” www.ofimagazine.com

19/03/2020 11:21:23

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OFI – MARCH/APRIL 2020 33

LATIN AMERICA

With the 10th largest population worldwide, Mexico is an attractive market for edible oils, with soyabean remaining the main oil produced domestically Sunder Singh With a population of more than 131M – the 10th largest globally – Mexico is one of the most attractive markets in Latin America for edible oils. Spanning a geographical area of 1.973M km2, Mexico is a vast country. As the second most populous nation in Latin America and the most populous Spanish-speaking country in the world, it is a vital market for global edible oil producers and suppliers.

Vegetable oil industry

Mexico’s economy has been performing positively, with a 2.1% growth rate in 2018 and a decline in inflation.

However, for the edible oil industry, one of the greatest challenges relates to the country’s high 43% poverty rate, which has deprived it of a huge section of the market.

According to the World Bank Annual Report of 2018, “The mid-term outlook for the country is rather optimistic, with projected upward economic growth, driven by private consumption; as well as further drops in inflation and public debt, which ultimately may positively influence public spending.”

Soyabean oil remains the major oil produced in Mexico, accounting for 62% of total domestic vegetable oil production.

According to a United States Department of Agriculture (USDA) GAIN report, about 96% of domesticallyproduced soyabean oil is extracted from imported US soyabeans. In 2018-19, Mexico produced a total of 0.98M tonnes 34 OFI – MARCH/APRIL 2020

Mexico.indd 2

Steady growth of soyabean oil and imported 176,000 tonnes of soyabean oil in 2018.

The USA continues to be the main supplier of soyabean oil to the Mexican market and, due to lower freight costs, it is expected to maintain and potentially increase this share in coming years.

Canola oil is the second largest vegetable oil consumed in Mexico, which imports a significant supply of seed and oil from Canada. Between 1 August 201830 July 2019, Mexico imported 78,100 tonnes of canola oil and 1.27M tonnes of canola seed for crushing from Canada.

Investments in oil palm plantations in the past 15 years have made palm oil the third largest oil produced in Mexico by volume.

This growth has largely been driven by government programmes encouraging oil palm planting in Campeche, Chiapas, Tabasco and Veracruz states.

Palm oil consumption in Mexico totalled approximately 676,000 tonnes in 2018.

An additional 69,000 MT of palm kernel oil (PKO) and 38,000 tonnes of refined palm oil were also consumed.

Palm oil has become increasingly important for the food processing industry in recent years since companies began removing trans fats from their recipes.

Several snack food companies have also switched to palm oil for products such as potato chips due to its attractive pricing.

Mexico produced about 237,000 tonnes of crude palm oil (CPO) in 2018, representing a nearly 25% increase from the previous year. Approximately 13,000 tonnes of PKO was also produced.

Despite growing palm oil production, Mexico is heavily dependent on imports of palm oil to meet domestic demand.

Approximately 65% of CPO consumption is supplied through imports. In 2018, CPO

imports were estimated at approximately 439,000 tonnes.

Costa Rica and Guatemala accounted for more than 50% of total palm oil imports into Mexico, while Honduras, Columbia and Nicaragua accounted for about 31%.

Indonesia and Malaysia, the world’s two largest palm oil producers, accounted for just 14% of total palm oil imports into Mexico. The high level of of palm oil imports from South American countries is due to the trade advantage gained by Mexico as a result of the Central American Free Trade Agreement (CAFTA).

Mexico’s appetite for vegetable oil imports is likely to grow steadily in the coming years as rising disposable incomes drive consumption growth at a faster rate than in recent years.

Domestic edible oil producers

Large companies such as Agydsa, Ragasa, Proteinas y Oleicos, and Cargill represent nearly 80% of oilseed crushing capacity in Mexico. There is stiff competition between these companies in the domestic market. Almost all of them have made significant investments to expanding the scale and scope of their operations in recent years.

Currently, Agydsa is building a new plant in Jalisco with a crushing capacity of 4,000 tonnes/day, which is expected to become operational in August. Similarly, Cargill recently invested US$16M to install a production and bottling line for vegetable oils at its plant in Hidalgo. As a result, Cargill began participating in the vegetable oils and fats retail sector in Mexico. With the new production line, Cargill’s Hidalgo plant became one of the company’s largest and most modern www.ofimagazine.com

19/03/2020 11:23:31

LATIN AMERICA edible oils, another for mineral bulk and a specialised facility for hydrocarbons.

worldwide. The plant itself produces 13,000 tonnes/month of soyabean oil, which is sold in bulk and in packaging.

Major importing ports

Bordered by the Pacific Ocean, the Caribbean Sea, and the Gulf of Mexico; with the USA to the north, and Belize and Guatemala to the south, Mexico has a total of 102 ports and 15 out-of-port terminals. However, the majority of trade takes place through five major ports – Altamira, Ensenada, Lázaro Cárdenas, Manzanillo and Veracruz.

Manzanillo Port is Mexico’s largest and is located in Colima state, along the Pacific coast. The port handles Pacific Ocean cargo for the Mexico City area. Most imports destined for central Mexico come through Manzanillo Port which, given its location, acts as an important port for Asian exporters.

The port presently trades with 74 other ports around the world and has 14 terminals handling containers and bulk products such as palm oil, fish oil, refrigerated foods and fluids, cement, fertilisers, petroleum products, and wheat.

It also has a cruise terminal.

A specialised facility at the terminal handles liquid bulk products such as palm and fish oils, with capacity for 13.9m2. The 2.8 ha PEMEX refining oil terminal has three berths.

Currently, the Mexican government is in the process of upgrading Manzanillo Port with four new terminals. The government expects to collect about US$1.2bn from public and private entities to fund the expansion project. Authorities have dredged the navigation channel and carried out environmental works in the northern area of the port.

The new terminals will feature a specialised container facility, which will have the capacity to handle 1.75M TEUs a year, one for agricultural bulk and www.ofimagazine.com

Mexico.indd 3

Lázaro Cárdenas Port is the second busiest in Mexico, located on the Pacific Ocean basin, and is one of the largest seaports in the area.

This deep-water seaport is equipped to accommodate and handle containerised, dry bulk and liquid cargoes. A new semiautomated terminal, opened in 2017, has the capability to handle more than 1.2M containers per year. With this expansion, the port’s capacity has increased from 27M to 29M tonnes. The port is well connected to Mexico City, located just 620km away, and to the USA through the Kansas CitySouthern de Mexico rail network. Most of the port’s imports and exports are destined for neighbouring Canada, Colombia, Guatemala and the USA. Veracruz Port is Mexico’s third largest port in terms of cargo handling. Located on the country’s eastern coast with direct access to the Gulf of Mexico, this port was Mexico’s largest until 2005, when it was overtaken by Manzanillo.

Veracruz is the country’s oldest and most historically significant port. With well-connected railways and highways, the port serves all of central and southern Mexico, with connections to as far north as the US state of Illinois. Given its strategic location on the Gulf, it provides ocean freight services to north, central, and south America, Europe and Africa.

Veracruz Port dates back to Spanish colonisation, when it was used to import African slaves to work in shipyards and sugarcane fields. During colonisation, Vercruz was Mexico’s most important port. The port underwent a US$160M expansion recently, which included construction of Latin America’s longest

breakwater at 4.3km long. The new facility has five terminals and 35 berths, which has enabled the port to increase capacity from 28M to 95M tonnes/year.

Altamira Port is located on Mexico’s eastern coast facing the Gulf of Mexico, and is the country’s fourth largest port. It is connected to 125 ports, most of which lie along the Atlantic coast.

Domestically, land and rail connections link the port directly to the northern and central parts of Mexico, including important cities such as Monterrey, Saltillo, Reynosa, Guadalajara and Mexico City. Half of the cargo at Altamira has origins and/or destinations in the port’s northern zones of Tamaulipas, Nuevo Leo, and Coahuila, while nearly 30% goes to or comes from the central regions Guanajuato, Jalisco, Queretaro, San Luis Potosi and Zacatecas.

Ensenada Port is a deep-water port on the western coast of the Baja California region, located about 110 km from the US state of California.

Given its strategic location on the Pacific Coast, it has direct connections to 64 ports in 28 countries. Most of the cargo calling at the port hail from Asia, North America and South America.

The three most important land routes for the transport of merchandise to and from the port are the Tijuana-Ensenada highway, and the Tijuana-Ensenada and Tecate-Ensenada federal highways.

Most of the cargo arriving and departing from the Port of Ensenada use these three routes, which also connect to the key highways in the USA. In addition, these routes offer direct connections to the cities of Tijuana, Tecate and Mexicali, which are major US border crossings.  Sunder Singh is a freelance journalist



Ensenada Port

 Altamira Port 

Manzanillo Port  Lázaro Cárdenas Port

▪

 Veracruz Port

OFI – MARCH/APRIL

35

19/03/2020 11:23:40

STATISTICS STATISTICAL NEWS Palm oil futures prices

CPO settlement prices (Malaysian ringitt)

MPOC/Bursa Malaysia

The palm oil market is hopeful of India resuming purchases after Muhyiddin Yassin was sworn in as the new prime minister on 1 March, Business Recorder writes.

Former prime minister Mahathir Mohamad, whose criticisms about India have soured palm oil trade with the country, unexpectedly resigned on 24 February.

The Malaysian palm oil market has been under pressure over lost sales to India and worries about falling global demand due to the novel coronavirus (COVID-19) spreading outside of China.

The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange rose 57 ringgit, or 2.41% on 4 February, to RM2,377 (US$565.41).

EU oilseed imports

EU rapeseed, soyabean imports (M tonnes)

UFOP, EU Commission

The EU-28 has imported around 8.7M tonnes of soyabeans in the 2019/20 season to date, down some 6% year-on-year, says UFOP. The USA supplied the largest share of imports, at 52%, since the marketing year began on 1 July 2019. This was also the case in the same period in 2017/18 but both the share and total amount were considerably bigger back then, at 79% and 7.1M tonnes respectively. The lower shipments in the current season are probably mainly due to the smaller US harvest (down 20% from the previous year).

Ukraine is the top rapeseed supplier to the EU-28, at around 2.8M tonnes in the current season, becoming significantly more important as a country of origin for EU rapeseed imports.

Canadian oilseed stocks

Canadian oilseed stocks, end of 2019 (M tonnes) UFOP, Statistics Canada

Prices of selected oils (US$/tonne) Sept 19

Oct 19

Nov 19

Dec 19

Jan 20

Feb 20

Soyabean

746.8

753.8

748.5

826.1

857.3

772.8

Crude palm

578.2

615.1

692.2

772.5

801.6

718.7

Palm olein

541.4

573.1

648.8

720.0

728.3

656.7

Coconut

741.0

736.5

838.4

1,038.4

1,015.1

884.0

Rapeseed

881.7

888.4

872.4

918.8

935.3

870.3

Sunflower

751.2

720.3

758.9

803.9

841.4

762.7

Palm kernel

637.3

624.4

775.6

977.1

991.7

830.0

Average

697.0

702.0

762.0

865.0

882.0

785.0

Index

165.0

166.0

181.0

205.0

209.0

186.0

36 OFI – MARCH/APRIL 2020

Stats.indd 1

Mintec

Statistics Canada estimates the country’s total oilseed stocks at the end of 2019 at 18.5M tonnes. This is a 4% drop year-on-year but a 3.2% increase compared to the average over the past five years.

Rapeseed – which accounts for just over three-quarters of Canadian oilseed stocks – showed a similar trend.

Stocks at 14.3M tonnes represent a 2.4% decrease from the previous year, but also a 4.9% rise from the five-year average.

Statistics Canada estimates soyabean stocks at the end of 2019 at 3.9M tonnes, down 9.4% year-on-year, but 2.7% up from the five-year mean.

Mintec provides independent insight and data to help companies make informed commercial decisions.

Tel: +44 (0)1628 851313 E-mail: sales@mintecglobal.com Web: www.mintecglobal.com The Union for the Promotion of Oil and Protein Plants represents the interests of companies and associations involved in the production, processing and marketing of oil and protein plants in Germany

www.ofimagazine.com

19/03/2020 11:26:20

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