In 2022, global soybean oil prices, driven by an increase in the demand for biofuels, have been projected to rise by about 4 percent, to $1,425 per tonne; a market report from IndexBox reveals.
According to the IndexBox report, the growing demand for biofuels, especially in Asia, will increase the prices of soybean oil globally.
The platform put it that in 2021, the average annual soybean oil price rose by 65 percent year-on-year to $1,385 per tonne, from $838 per tonne. Strong demand and high freight rates in China, which is the world’s second-largest importer of soybean oil, resulted in the most rapid price growth of the commodity in the third quarter (Q3) of the same year. Weather-related disruptions to production in South America also caused soybean oil prices to rise fast.
In 2020, IndexBox estimates that soybean oil purchases in the foreign markets rose by 7.5% to 13 million tonnes, increasing for the second year in a row after three years of decline. In value terms, soybean oil imports have grown notably to $10.3 billion.
India was the highest importing country with a purchase volume of around 3.7 million tonnes, accounting for 28% of global supplies. China ranked second with a purchase volume of 963 thousand tonnes. Algeria (670 thousand tonnes) and Bangladesh (666 thousand tonnes) were ranked as the third and fourth major importing country.
The four countries altogether accounted for about 17% of total soybean oil imports. Coming behind as the fifth-highest importer is Morocco (547 thousand tonnes), followed by Mauritania (537 thousand tonnes), Peru (521 thousand tonnes), South Korea (390 thousand tonnes), Colombia (378 thousand tonnes), Venezuela (373 thousand tonnes), Egypt (243 thousand tonnes), Poland (229 thousand tonnes) and Nepal (215 thousand tonnes).
India in value terms ($3 billion) being the largest market for soybean oil imports in the world, accounted for 29 percent of global imports. The second position in the ranking was taken by China ($725 million) with a 7 percent share. North African country, Algeria came third with a share of 4.6 percent of the total value.
Top Soybean oil exporters
In 2020, Argentina was the major exporter of soybean oil (5.3 million tonnes), constituting 42% of total exports. The United States (1238 thousand tonnes), Brazil (1110 thousand tonnes), Paraguay (631 thousand tonnes), the Netherlands (615 thousand tonnes) and Russia (611 thousand tonnes) follow, altogether accounting for 33% of global supplies. Meanwhile, Spain (387 thousand tonnes), Bolivia (377 thousand tonnes), Ukraine (302 thousand tonnes), Turkey (208 thousand tonnes) and Germany (192 thousand tonnes) had relatively small shares in the total volume.
In value terms, Argentina remains the largest supplier of soybean oil in the world ($ 3.7 billion), which accounts for 39% of global exports. The United States ($ 979 million), with a share of 10% of the total supply is ranked second. Both countries are followed by Brazil with an 8% share.
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Federal Government Revokes 1,633 Mineral Titles Over Non-payment
In a significant move to enforce compliance and revitalize the solid minerals sector, the Federal Government through the Ministry of Solid Minerals Development has taken decisive action by revoking 1,633 mineral titles previously granted to non-compliant mining companies.
The announcement was made by the Minister of Solid Minerals Development, Dele Alake, during a press briefing in Abuja.
The revocation of these mineral titles was a result of the mining companies’ failure to fulfill their mandatory annual service fees of N1,500 per cadastral unit.
Alake emphasized that the move aligns with Sections 10, 11, and 12 of the Mining Act, and it is aimed at creating opportunities for potential investors willing to contribute to the sector.
Expressing disappointment at the non-compliance of mining firms, Alake stated, “It is indeed very unconscionable for corporate bodies making huge profits from mining to refuse to give the government its due by failing to pay their annual service fee.”
The minister stressed that the mining companies, despite reaping significant profits from mining activities, failed to meet their financial obligations to the government.
He further highlighted the nominal nature of the annual service fee, emphasizing that it pales in comparison to the revenue projections of these companies.
The revocation process, initiated by the Mining Cadastral Office on October 4, 2023, targeted a total of 2,213 titles, including Exploration titles, Small Scale Mining Licences, Quarry licenses, and Mining Leases.
The notice of revocation was published in the Federal Government Gazette on October 10, 2023.
Alake cautioned those whose licenses had been revoked to vacate mining sites promptly to avoid potential legal actions by security agencies.
The ministry’s commitment to cleaning up the sector for international competitiveness was underscored, signaling a new era for responsible and compliant mining practices in Nigeria.
Rising Rice Consumption Spurs 37% Price Surge, Reveals AFEX Report
A recent report by AFEX, the agricultural commodity trading firm, has brought to light the surge in rice consumption in Nigeria.
The AFEX Wet Season Crop Production Report for 2023 indicates that the country’s rice consumption has been steadily increasing, contributing to a consistent growth in the rice market.
The report highlights a 37% year-to-date increase in the price of rice in 2023.
According to AFEX, despite Nigeria’s potential to be a net rice exporter, it has spent over $15 billion in the past decade to meet the expanding demand for rice.
Globally, rice prices have reached their highest point in nearly 12 years due to factors such as India’s ban on rice exports and potential production disruptions from El Nino in key regions.
In Nigeria, the 37% price surge is attributed to reduced production in 2022 caused by flooding during the wet season.
The report anticipates a 4% increase in rice production and expects the price of paddy rice to rise by around 32%.
While the Northwest region accounts for 72% of the total rice production in Nigeria, the report underscores the need for strategies to bridge the supply gap and ensure sustainable rice production to meet the growing demand in the country.
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