Palm Oil Prices Have Surged and Granular Potash Prices Continue to Rise In February

-International Potash Market

Over the past month, palm oil prices have surged, increasing by nearly 20% from $970 per ton in early February to over $1160 per ton recently. This rapid accumulation has also driven up soybean oil and rapeseed oil prices from their previous lows, which is anticipated to contribute to an uptick in potash prices in the near future.

Brazilian granular potash prices continue to rise steadily, with suppliers aiming for higher price benchmarks. In Europe, delayed spring planting progress due to climatic conditions has exerted slight downward pressure in the short term.

Pupuk Indonesia has allocated 75,000 tons to two suppliers and has initiated tenders for standard potash for the second quarter, targeting around $300 per ton CFR. Negotiations with additional tender participants are anticipated in the upcoming week.

-International Agricultural Market Highlights

Ongoing farmer protests in Europe have led to concessions by the European Commission. Regulations pertaining to farmer fallowing and restrictions on fertilizer use within the "European Green Deal" will be eliminated. Meanwhile, citing a reduction in foreign exchange outflows in 2021, the Sri Lankan government has implemented a comprehensive ban on the import of fertilizers and pesticides, opting for an "organic agriculture" strategy. Consequently, with fertilizer shortages, rice harvests plummeted by over 40% in the preceding year, accompanied by a 50% price hike, with only 60 tons of corn harvested in 2022. Therefore, the previous blanket policy of the European Union was deemed imprudent, and the cancellation of this policy is expected to promote positive procurement behavior for fertilizers and pesticides in Europe.

Malaysia aims to bolster food security by utilizing over 100,000 hectares of abandoned farmland. The latest initiative identifies several agricultural activities, primarily focusing on boosting the cultivation and yield of grains and cash crops.

Vietnam and the Netherlands are intensifying agricultural collaboration, with a focus on strategic planning for the Mekong Delta region, Vietnam's principal agricultural production area, contributing to half of the country's total rice production, 70% of aquatic products, and 60% of fruit. The Netherlands, the largest investor in Vietnam from the EU and its primary export market in Europe, has signed 18 cooperation memorandums with the Mekong Delta region.

Attention: The above information is only for commercial reference and Kelewell is not responsible for the authenticity of the data.