Wednesday Edition

03.10.10

Global

CPO FUTURES CONTRACT TO BEGIN TRADING ON CME GLOBEX
A dollar-denominated, cash-settled crude palm oil futures contract will begin trading on CME Globex in May under a partnership between CME Group and Bursa Malaysia. The contract will allow multinationals that use crude palm oil and trade in US dollars to hedge risk.


SHELL: 40% OF VEHICLES TO BE ELECTRIC BY 2050
Shell CEO stated this week that by 2050 40% of all vehicles in the world will be electric cars, and that over the next 40 years more low-carbon fuels, efficient engines, and hybrid vehicles will need to be produced to account for the remaining vehicles that are not electric in 2050, The Wall Street Journal reports.


North America

US SENATE VOTES FOR AMENDMENT INCLUDING BIODIESEL TAX CREDIT
The US Senate has voted to invoke cloture on the Baucus Substitute amendment of HR 4213 by a vote of 66 to 34 that would provide a one year, retroactive extension of the biodiesel tax incentive, the National Biodiesel Board stated in an email to members. Once debate is concluded, the Baucus Substitute as amended will be subject to a majority vote.

IMPERIUM RESTARTS BIODIESEL PRODUCTION
Imperium Renewables has restarted biodiesel production at its Grays Harbor plant that had halted production after a glycerin tank ruptured in December. The first of 40 rail cars of canola oil arrived this week to begin refining, according to the company.


TERRA ENERGY TO ACQUIRE OIL TERMINAL FOR BIODIESEL PRODUCTION IN PA
Terra Energy Resources announced today the final negotiations for the acquisition of a 24 million gal/yr oil terminal located in western Pennsylvania. The company plans to produce biodiesel for home heating fuel, according to a company announcement.


South America

ARGENTINA SOY EXPORTS STAY FLAT DESPITE LOWER OUTPUT
Argentina's soy exports during the first 11 months of 2009 were in line with the same period a year earlier despite a sharp decrease in output. Exporters focused on processing rather than exporting raw beans, according to the latest data from the Agriculture Ministry.

BRAZIL SOY CROP TO EXCEED LAST YEAR BY 18%
Conab estimated this week that Brazil’s 2009-10 soy crop would reach 67.5 million mt or 18.2% above the previous 2008-09 crop, CME reports. The prior estimate, given in February, was 66.7 million mt.

Asia / Pacific

CHINA'S LARGEST ETHANOL CO PLANS PLANTS IN SOUTHEAST ASIA
Henan Tianguan Group, China's second largest ethanol producer, plans to build plants in Southeast Asia to produce for Chinese consumption, Reuters reports. The company has been growing cassava in Laos on 50k ha, large enough to produce 300k mt of ethanol. Construction could start in two to three years.

MALAYSIAN PALM OIL FALLS TO LOWEST IN THREE YEARS
Palm oil production in Malaysia slumped to the lowest level in three years in February, dropping 12% to 1.16 million mt last month from a revised 1.32 million in January, the lowest output since April. 2007. About 82% of palm oil demand was met by imports last year, Bloomberg reports.


PALM OIL DEMAND TO EXPAND FASTER THAN OUTPUT
Palm oil demand will expand faster than output this year as El Nino curbs supply and Asian consumption expands, TransGraph Consulting Pvt. said. Global consumption will rise 6.2% to 46.8 million mt, and output will rise 5.9% to 47.4 million mt, Bloomberg reports.


Australia & New Zealand

FIRST NEW ZEALAND BIODIESEL STATION OPENS
New Zealand's first biodiesel station has opened in Queenstown, and will supply B20 to commercial vehicles. The consortium, set up by Otago Polytechnic Centre for Sustainable Practice, is a one-year pilot program to test summer and winter blends.


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