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BSE reported in Canada, market access likely ‘unaffected’… Canada’s government reported a case of atypical bovine spongiform encephalopathy (BSE) in an 8-1/2 year old beef cow in Alberta to the World Organization for Animal Health (OIE). The carcass did not enter the human food or animal feed chains OIE said, citing a report from the Canadian authorities.
The Canadian Food Inspection Agency (CFIA) says the finding will not affect Canada’s negligible risk status with OIE and market access “should be unaffected.” No quarantine or restrictions have been placed on the farm where the BSE case was found.
It is not clear whether there will be calls for the U.S. to halt imports of Canadian beef as some have urged relative to shipments of Brazilian beef to the U.S. after Brazil confirmed two atypical cases of BSE. However, the main issue raised by those wanting to halt imports of Brazilian beef are that the country waited several weeks before reporting the discovery.
SovEcon: Black Sea wheat crop is to exceed 110 MMT in 2022... Russian and Ukrainian farmers are expected to harvest 110.4 MMT of wheat in 2022, 2.6 MMT more than previously forecast by Black Sea region ag consulting firm SovEcon.
For Russia, SovEcon increased its crop estimate by 600,000 MT to 81.3 MMT, as favorable crop conditions are expected to more than offset a 900,000 hectare drop in seeded area.
For Ukraine, the firm upped its estimate by 2.0 MMT to 29.1 MMT. Farmers were able to plant a record 7.0 million hectares to winter wheat, an increase of 100,000 acres from 2020.
The two countries produced a combined 107.3 MMT of wheat in 2021, with Russia harvesting 75.4 MMT and Ukraine producing 31.9 MMT, according to the firm’s estimates.
Argentine government sets corn, wheat export limits... The Argentine government will cap 2021-22 corn exports to 41.6 MMT, while wheat would be limited to 12.5 MMT. As of Dec. 16, exporters had reported shipments of 15.5 MMT of corn and 9.1 MMT of wheat for 2021-22.
For 2020-21, Argentina exported 39.8 MMT of corn and 11.2 MMT of wheat. However, this year’s exports were expected to rise on increased production.
Environmental Protection Agency (EPA) announces mileage standards increase... In a final rule issued today, EPA raised vehicle mileage standards starting in the 2023 model year. The rule will ramp up to an industry-wide target of 40 miles per gallon standard by 2026, according to the agency. The standards raise mileage goals set by the Trump administration that would achieve only 32 miles per gallon in 2026. President Joe Biden had set a goal of 38 miles per gallon in August.
The rules reduce greenhouse gas emissions between 5% to 10% each year from 2023 through 2026. Biden wants cut U.S. greenhouse gas emissions at least in half by 2030.
The rule aims to expand zero emissions (battery and plug-in hybrid) vehicles with a goal of 7% market share in 2023 to 17% market share in 2026.
RFS proposals in Federal Register on Tuesday... EPA will publish its Renewable Fuel Standard (RFS) proposals for 2020, 2021 and 2022 in the Federal Register on Tuesday, Dec. 21.
On Dec. 7, EPA announced its proposed levels for the Renewable Fuel Standard (RFS) for 2020, 2021 and 2022 with the announcement indicating the public comment period on the proposed levels would end Feb. 4. EPA has set a public hearing for Jan. 4 (and possibly Jan. 5) to receive public input in the plan, with speakers allotted three minutes to present their views to the agency.
EPA has also proposed adjusting the compliance dates the program to compensate for the levels not yet being finalized for 2021 and for the proposed changes to the 2020 RFS levels that were finalized in December 2019. There is a Jan. 3 deadline for comments to be submitted on that plan.
Freight transportation cost increases aren’t dissipating... The surging spot shipping rates of the past year are set to translate into steep price increases in 2022, the Wall Street Journal writes, as freight carriers and other operators across supply chains flex their leverage in new contract negotiations. Experts say shipping demand still far outweighs tight capacity across most transportation and logistics markets. Executives say container shipping rates could double the level of annual agreements that were struck in early 2021, and some trucking companies are asking for and getting double-digit increases in contract pricing.
Operators say their expenses are also rising, including higher labor costs as they raise wages to retain workers. Big retailers and manufacturers may have the scale to minimize some cost increases, but smaller shippers likely have little room to shop around.
Planned Iowa beef packing plant expansion gets state aid... The Iowa Economic Development Authority (IEDA) Board approved $14 million to help Iowa Premium, owned by National Beef, increase its slaughter capacity, facilities and employees.
The Tama, Iowa slaughter plant plans to double its weekly slaughter from the current 6,750 head. The planned $561.9 million dollar investment is expected to build a new 800,000 square-foot plant and add create an additional 396 jobs.
To calm inflation, India halts key farm commodities futures trade... The Securities and Exchange Board of India (SEBI) ordered commodity exchanges not to launch futures contracts of soybean, soyoil, crude palm oil, wheat, paddy rice, chickpea, green gram, rapeseed and mustard for a year. For existing contracts, no new positions would be allowed.
Critics of the move say the regulator could have suspended the futures markets for a few months, instead of a year. They predicted edible oil imports might also be reduced as importers and traders will not have a platform to hedge their risk.
The year-long suspension is India’s most dramatic move since it allowed futures trade in 2003. Indian officials have already cut import taxes on edible to curb high prices.
India extends palm oil imports until December 2022... In an effort to tame edible oil prices, the Indian government will allow palm oil imports another six months. The world’s largest vegetable oil buyer said imports of refined palm oil would be allowed until Dec. 31, 2022.
Indian buyers can import 1.5 MMT of refined palm oil and 7 MMT of crude palm oil in the 2021-22 marketing year that started on Nov. 1.
Taiwan’s voters reject ractopamine referendum... Voters backed the Taiwanese government and rebuffed an effort to limit U.S. pork imports over the weekend. A group with close ties to the Chinese government had campaigned to ban U.S. pork imports over the use of ractopamine.
Officials hope the vote will help Taiwan’s chances of joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Last year, Taiwan’s government approved U.S. pork imports with the feed additive to show it is reliable trade partner.
Successful biofuel trial announced for marine shipping... BP and Maersk Tankers successfully completed trials using marine fuel blended with biofuel on tankers as efforts grow to tackle the shipping sector’s greenhouse gas emissions. Each shipping vessel used a B20 biodiesel blend produced from recycled cooking oils and renewable oil sources, blended with very low sulfur fuel oil.
“No adverse effects to equipment or machinery were observed during or after the trials. No modifications to the engine or infrastructure were required,” BP said.
Brazil’s Petrobras to start testing renewable diesel in January... Brazil’s state-run oil company will start testing new renewable diesel based on co-processed edible oils in January with customers. The tests are expected to take six months and are supported by a fuel distributor and bus fleet.
The oil company can currently produce 114,000 MT per year of renewable fuel based on co-processed soybean oil.
The company expects to invest $600 million in new production units from 2022 to 2026, including investments in two refineries to make 505,000 MT of renewable fuel per year and a 100% renewable biorefinery capable of producing 500,000 to 800,000 MT per year in 2027.
Australia to avert diesel exhaust fluid shortage... A fertilizer company will scale-up manufacturing of technical grade granular urea, a critical component of diesel exhaust fluid (DEF), to avoid a shortage in Australia. Australian officials have also reached an agreement to import more urea and to have shipping companies prioritize the shipment of urea and DEF.
The ramping up of production will not impact the agricultural fertilizer supply to local farmers or disrupt local distribution chains for DEF, according to officials.
