Latest news with #biofuel
Reuters
2 days ago
- Business
- Reuters
Exclusive: Indian refiners cancel palm oil orders for July-Sept as prices surge
MUMBAI, June 18 (Reuters) - Indian refiners cancelled orders for 65,000 metric tons of crude palm oil (CPO) scheduled for delivery from July to September following a sudden surge in benchmark Malaysian prices, four trade sources told Reuters. Refiners in the world's largest palm oil importer cancelled the orders in the past three days after Malaysian palm oil futures rose more than 6%, hedging their risk against the prospect of falling prices by locking in a profit. "There is a lot of volatility in the market. There was more margin in cancelling bought CPO than in importing, refining, and selling refined palm oil in the local market," said an Indian buyer who operates a refinery on the west coast and cancelled shipments for July delivery. Indian buyers made CPO purchases nearly a month ago around $1,000 to $1,030 per ton, including cost, insurance, and freight, after a rebound in palm oil production brought down prices to their lowest in more than eight months. This week, palm oil futures jumped, tracking a rally in Chicago soyoil futures after the U.S. proposed higher biofuel blending volumes. The sudden rise prompted Indian refiners to cancel contracts at between $1,050 and $1,065 per ton, making a profit of more than $30 per ton, said the sources who spoke on condition of anonymity because they were not authorised to speak to media. Buyers agreed to contract cancellations by accepting a price slightly lower than the current market rate, a decision mutually reached with sellers, said a New Delhi-based dealer with a global trading house. The CPO is being offered at about $1,070 a ton in India for July delivery, compared to $1,020 to $1,030 a month ago. Despite the cancellations, Indian imports are poised to rise in coming months after falling far below average in recent months, bringing down inventories, said Sandeep Bajoria, chief executive of Sunvin Group, a vegetable oil brokerage. India's palm oil imports hit a six-month high in May, driven by low inventories and the oil's price discount to rival soyoil and sunflower oil. Indian buying had gained momentum after India last month halved the import duty on CPO, but the cancellations have disrupted that momentum, said a Kuala Lumpur-based trader with a palm oil producing company.
Zawya
3 days ago
- Business
- Zawya
Chicago soybeans flat on favourable weather, soyoil supports
BEIJING/PARIS - Chicago soybean futures were flat on Tuesday, torn between favourable U.S. crop weather and still strong soyoil prices despite a small fall after a sharp two-day rally, fuelled by surging crude oil and stronger U.S. biofuel blending mandates. The most-active soybean contract was unchanged at $10.69-3/4 per bushel, as of 1145 GMT. Soybeans had touched a one-month high and soyoil a 20-month high on Monday. Analysts said Iran-Israel tensions could add volatility to grain markets through energy price shocks. "At present eyes across all markets are on what is occurring in the Middle East," said Andrew Whitelaw, agricultural consultant at Episode 3. "The region is a huge contributor to the energy markets, and these markets have a huge impact on grain pricing levels." Soyoil dropped 0.3% at 54.95 cents per pound, as traders took profits, removing some support for soybeans. Soyoil is used to make biodiesel, and is therefore influenced by oil prices. These rose on Tuesday on rising disruptions from the Iran-Israel conflict, although major oil and gas infrastructure and flows have so far been spared from any substantial impact. The oilseed also continues to face headwinds from weak demand, tariff uncertainty and global competition. Corn slipped 0.06% to $4.35 a bushel, pressured by beneficial weekend rains across key growing regions, including parts of the Plains and the northwest and southeastern Midwest. However, strong export data helped curb losses. U.S. corn inspections in the latest week reached about 1.67 million metric tons, at the high end of trade expectations. Weekly condition ratings for the country's corn crop also improved and were tied for the highest for this time of the season in several years, according to U.S. government data. Soybean ratings declined. rose 0.65% to $5.40 a bushel, though harvest pressure capped gains. The U.S. winter wheat harvest is expanding after a slow start. The USDA said the winter wheat crop was 10% harvested, up from 4% a week ago but behind the five-year average of 16%. Analysts on average had estimated harvest progress at 11%. In France , the farm ministry on Tuesday forecast a strong rebound of the country's 2025 winter barley and rapeseed production from rain-hit crops last season. Commodity funds were net buyers of Chicago Board of Trade soyoil futures contracts on Monday and net sellers of corn, soymeal, wheat and soybean futures, traders said. Prices at 1145 GMT Last Change Pct Move CBOT wheat 540.00 3.50 0.65 CBOT corn 435.00 0.25 0.06 CBOT soy 1069.75 0.00 0.00 Paris wheat 199.75 -0.50 -0.25 Paris maize 185.75 0.25 0.13 Paris rapeseed 490.00 1.00 0.20 Euro/dlr 1.16 0.00 0.03 Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne
Zawya
4 days ago
- Business
- Zawya
Soyoil around 18-month highs, grains fall on good crop weather
HAMBURG - Chicago soyoil hit its highest in around 18 months on Monday, supported by U.S. biofuel blending proposals that are likely to increase demand, while favourable U.S. weather conditions drove wheat and corn lower. Crude oil fell after renewed military strikes by Israel and Iran over the weekend left oil production and export facilities unaffected, easing concern about disruption of crude supplies. That removed some of the support for soybean prices, which tend to move in tandem with oil, that was seen on Friday. The larger-than-expected biofuel blend proposals, however, still supported the soy complex. The Chicago Board of Trade's most-active soyoil rose 5.7% to 53.50 cents per pound at 1131 GMT, around its highest since December 2023. Soyoil gains also pulled soybeans up 0.1% at $10.71-3/4 per bushel. Wheat fell 1.2% to $5.37-1/4 a bushel as the U.S. winter wheat harvest accelerates. Corn fell 1.1% to $4.39-1/2 a bushel, weakened by favourable weather forecasts for crop development in the U.S. corn belt. 'Soybeans and soyoil are being underpinned by the Trump administration's larger-than-expected biofuel blending proposals which would generate more demand for soyoil and so soybeans," said Matt Ammermann, StoneX commodity risk manager. "The Trump Administration is not known to be renewable energy-friendly, but the substantial increase could be intended to reduce the sting of the trade war with China, which has hugely damaged U.S. soy exports to China.' Traders await weekly crop ratings on Monday from the U.S. Department of Agriculture, with U.S. winter wheat harvesting accelerating, corn and soybean planting is finishing. 'Wheat and corn are weaker today as crop weather in the U.S. is looking very positive this week, with just the right mix of sunshine needed for the winter wheat harvest with a little rain needed for corn development,' said Ammermann. 'Other north hemisphere wheat crops are also looking good, especially in the Black Sea. This raises the prospects of extra competition from the Black Sea to exporters in the U.S. and other regions.'
Times of Oman
6 days ago
- Business
- Times of Oman
India's biofuel sector transitioning from promise to partial implementation: Report
New Delhi: India's biofuel sector is slowly moving from a stage of promise to partial implementation, supported by strong government policies, rising need for decarbonization, and the push for rural value creation, according to a report by YES Securities. The report highlighted that while government support through initiatives like SAMARTH (for biomass), E20 (for ethanol), and SATAT (for compressed biogas or CBG) remains strong, the actual progress in building the required infrastructure is uneven across different segments. It said "India's biofuel sector is transitioning from promise to partial implementation, driven by policy tailwinds". Among all segments, ethanol blending has shown significant progress, with around 18 per cent blending achieved. This has also resulted in a visible return on capital employed (RoCE) for producers. Solid biofuels are also gaining ground in industries as substitutes for coal and furnace oil. This shift is being driven by better economics and pressure to meet environmental, social, and governance (ESG) goals. However, the report noted that the CBG segment still faces several challenges. These include problems with feedstock logistics, underutilised production capacity, and the lack of infrastructure needed to monetise by-products, which are crucial for making CBG plants financially viable. The report added that investors should now focus on segments that are showing operational progress, have clear offtake guarantees linked to policy, and show a realistic path to scale. In terms of policy and mechanism support, the report explained the role of co-firing, which involves blending solid biofuels with coal in power plants. According to a Ministry of Power (MoP) order issued in 2021, all thermal power plants with a capacity of more than 200 MW are required to blend 5 per cent biomass starting from FY22. In regions prone to high stubble burning like Punjab, Haryana, and Uttar Pradesh, the limit has been increased to 7 per cent. This effort is being driven under the SAMARTH Mission, a government initiative to promote sustainable fuel use. India's coal-fired power capacity stands at about 210 GW. Even a 5 per cent blend would require around 10.5 GW of power to be generated from biofuels. This would translate to the use of 15-20 million metric tonnes (mmt) of biomass every year, creating a potential market of over Rs 500 billion. Public sector power utility NTPC has emerged as a leader in the co-firing space. As of early calendar year 2025, it has already co-fired more than 2.5 lakh tonnes of biomass across its units in Dadri, Jhajjar, and others. Some of these units have achieved 7-10 per cent biomass blending. Despite the policy push, the report pointed out several bottlenecks. These include variation in the calorific value and combustion characteristics of biomass, difficulties in logistics and storage due to the perishable nature of biomass, and the need for plant-specific burner modifications to enable efficient co-firing. The report concluded that while the biofuel sector holds significant promise, actual implementation will depend on overcoming these practical challenges and ensuring consistent progress across all segments.
Zawya
7 days ago
- Business
- Zawya
Soybeans steady as oil rally offsets biofuel worries
BEIJING/PARIS - Chicago soybeans ticked up on Friday on the back of a jump in crude oil prices after Israel conducted strikes on Iran, though the oilseed market remained capped by uncertainty over U.S. biofuel targets and expectations of abundant global supply. Wheat edged higher to recover from an earlier four-week low, while corn eased to move back towards a six-month low from last week. Favourable crop prospects continued to hang over grain markets, with relatively benign weather in the U.S. Midwest and the onset of wheat harvesting in the Northern Hemisphere. The most-active soybean contract on the Chicago Board of Trade (CBOT) was up 0.2% at $10.44-3/4 per bushel, rebounding from a one-week low on Thursday. CBOT soyoil added 1.3%. Oil prices jumped nearly 9%, hitting their highest in months after Israel said it struck nuclear and military sites in Iran, dramatically escalating tensions in the Middle East and raising worries about disrupted oil supplies. "Rising crude oil prices lifted soyoil prices by making biodiesel more attractive, boosting demand for soyoil as a key biofuel ingredient," said Johnny Xiang, founder of Beijing-based AgRadar Consulting. That brought relief for the soybean complex after renewed concern on Thursday about U.S. biofuel policy. The U.S. Environmental Protection Agency (EPA) on Friday is expected to propose lower than-anticipated biofuel blending mandates, four sources told Reuters. ADM, a key U.S. soybean crusher and biofuel producer, cut bids for soybeans this week ahead of the EPA announcement. CBOT corn shed 0.7% to $4.35-1/2 a bushel. The market shrugged off a tighter stocks forecast for U.S. corn in a monthly U.S. Department of Agriculture report on Thursday, which was broadly expected following brisk recent exports. Supply pressure has built in corn and soybeans amid favourable growing weather in the U.S. Midwest and as Brazil begins harvesting what is expected to be a bumper second corn crop following a record soybean harvest. CBOT wheat was up 0.8% at $5.30-1/2 a bushel. The wheat market is facing seasonal harvest pressure in the Northern Hemisphere, where large crops are anticipated in the United States, Europe and Russia, despite mixed weather in recent months. "The groundwork for higher prices is there but the time frame is months rather than weeks, and before that can happen, we have to go through North Hemisphere harvest pressure," said Ole Houe, head of advisory services at IKON Commodities in Sydney. Prices at 1051 GMT Last Change Pct Move CBOT wheat 530.50 4.00 0.76 CBOT corn 435.50 -3.00 -0.68 CBOT soy 1044.75 2.50 0.24 Paris wheat 200.25 1.50 0.75 Paris maize 186.75 1.00 0.54 Paris rapeseed 489.00 6.75 1.40 WTI crude oil 73.83 5.79 8.51 Euro/dlr 1.15 -0.01 -0.75 Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per metric ton.
