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AMIS Market Monitor

last release: July 2018

Policy Developments

Biofuels

  • On 5 June, as part of the RenovaBio law, the National Energy Policy Council of Brazil set a target to reduce fuel emissions by 10 percent by 2028.  
  • On 14 June, the European Parliament, the European Council and the European Commission agreed on a regulatory framework which sets a binding renewable energy target of 32 per cent for 2030, including a review clause by 2023 for an upward revision of the target. The Directive would be approved by the European Parliament and the Council in due course. 
  • On 26 June, the US Environmental Protection Agency issued a proposal for new biofuel targets in 2019 and 2020, setting a blending mandate of 19.88 billion gallons for 2019 under the Renewable Fuel Standard, 3 percent higher than this year’s and in line with expectations. In addition, the agency proposed an advanced fuel requirement at 4.88 billion gallons for 2019 and a biodiesel mandate of 2.43 billion gallons for 2020.

Across the board

  • On 6 June, Brazil released its agricultural support package for 2018/19. The government has earmarked up to BRL 191.1 billion (USD 51.13 billion) in loans to promote large and medium-sized agricultural producers. The loans and credit lines will be accessible to producers starting 1 July and through 30 June 2019.
  • On 15 June, the State Council's commission on Tariffs and Customs in China announced a tariff of 25 percent on a list of imports from the US including soybean, maize, wheat and sorghum products. The tariff would be effective from 6 July 2018. Starting on 1 July, China will remove tariffs on soybeans and soybean cake imported from Bangladesh, India, Laos, South Korea and Sri Lanka. The tariffs on soybean and soybean cake currently are 3 and 5 percent, respectively. 
  • On 19 June, India notified the WTO of draft Food Safety and Standards Amendment Regulations for 2018 on wheat bran and non-fermented soybean products. The final date to comment on the measure is 18 August 2018 (G/SPS/N/IND/220).
  • On 31 May, the Ministry of Agriculture in Mexico announced new target prices for the 2017/18 fall/winter and 2018 spring/summer planting seasons. These target prices are used to determine support payments under the Income Target Program for producers of maize, wheat (durum and soft wheat for bread production), sorghum, soybeans and rice.
  • On 22 June, the EU imposed an additional duty of 25 percent on imports of certain maize and rice products from the US.
  • On 6 June, the US notified the WTO of the establishment of new residue limits on pydiflumetofen in several commodities, including maize, wheat and barley, effective from 24 May 2018.

Logistics/Infrastructure/Trade Junctures

  • A prolonged rail strike in France has led to increased transport costs for grains firms.