Wednesday Edition

03.04.09

GLOBAL

Goldman Sachs has stated that investors should take profits on shares of palm plantation companies as CPO prices are poised to drop as much as 15% in the next three to six months.

NORTH AMERICA

NGV Global reports findings from an Energy Futures Inc. study showing that the switch to clean alternative fuels is gaining momentum at US and international container shipping ports. U. S. ports are leading the way in this initiative by storing more biodiesel and other renewable fuels.

Indiana Soybean Alliance is taking 250 gallons of cold climate biodiesel, Permaflo, produced through a process developed by Purdue University researchers to the Arctic Circle to study how it performs in harsh winter conditions. The fuel is capable of working at temperatures below -67°F without gelling.

Texas-based Global Alternative Fuels will invest $12 million in expanding its El Paso biodiesel plant from 5 to 15 million gallons per year. The company plans to break ground in Q2.

SOUTH AMERICA

Brazil's 2008-09 soybean crop is expected to drop 4.4% from the previous year, producing 57 million mt in 2008-09 compared to 59.6 million mt due to a mix of credit restrictions, higher production costs, lower soy prices, and climatic problems in southern Brazil.

BP plans to invest between $5 billion and $6 billion in Brazilian ethanol projects over the next five to 10 years. The company estimates that biofuels may account for 11-19% of the global transport fuel market by 2030.

Argentina’s government agreed to eliminate export taxes on dairy goods, increase the current annual beef export quota of 550,000 tons by 60,000 tons and raise wheat prices to $116 a ton in response to demands from farmers. However, the soybean export tax has yet to be discussed and talks will resume March 10.

ASIA / PACIFIC

Singapore-based Mother Earth Plantations is investing $100 million over four years in a jatropha project in Indonesia that includes the development of 1 million ha of land and the construction of a processing plant. Initial production of 30,000 mt is expected by 2013.

Cargill has announced that its first palm plantation, PT Hindoli in Sumatra, has received the Roundtable on Sustainable Palm Oil Certification.

Indonesia is expected to increase its CPO exports to Pakistan after Pakistan agreed to cut its import duty on Indonesian CPO exports by 10% under a preferential trade agreement.

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