Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 9950

BSP official says even reserve requirement cut now may be ill-timed

ANOTHER senior central bank official made the case for steady monetary policy settings at this week’s meeting, saying it may not be opportune to cut even banks’ reserve requirement just yet.
Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa C. Guinigundo said that the central bank is unlikely to start rolling back the 175-basis-point (bp) increase in benchmark rates just yet, noting that monetary authorities have to see first how the higher yields are working through the market.
“You don’t immediately reverse course. You have to give yourself a few more observations and make sure that what you intend to achieve is on the process of being achieved,” Mr. Guinigundo told reporters late Friday.
“We want to make sure that we go back to the 2-4% inflation target. But if you simply reduce the RR (reserve requirement) or reduce the policy rate in order to reverse what you did in 2018, [that] would be bad economic policy.”
The Monetary Board will hold its first rate-setting meeting for 2019 on Thursday. The BSP fired off five consecutive rate hikes last year to arrest surging inflation, marked with a back-to-back 50bp tightening move just as prices were surging by multiyear highs.
By December, the BSP saw scope to keep policy settings steady at 4.25-5.25% amid signs that inflation is on its way down, marked by two consecutive months of a sharp decline.
Last week, Deputy Governor Maria Almasara Cyd Tuaño-Amador also said that the central bank can afford to allow previous policy hikes to “work their way through the system,” noting that future rate decisions will be “timely” and “prudent.”
Market participants expect inflation to soften further from December’s 5.1%, but Mr. Guinigundo said: “You have to give yourself the time to review how the policy worked itself through the various channels of monetary policy — credit is one, inflation expectations is another, interest rate channel is another, so ayan ang titingnan mo (you have to look at those),” the BSP official added. “Yes, 5.1% is a big decline from the 6.3%, but it is still out of the target range of 2-4%.”
BusinessWorld’s latest poll among 12 economists yielded a median forecast of 4.55% for January inflation, which if realized will mark the third straight month of slower price increases. Official data will be out tomorrow.
Mr. Guinigundo also echoed concerns over calls for the BSP to cut bank reserves, as he highlighted the need for “tight” liquidity conditions before further RR cuts can be considered.
He added that year-to-date inflation should clock below four percent before the reserve standard is tweaked. — Melissa Luz T. Lopez

Hanjin’s rehabilitation receiver resigns

By Janina C. Lim
Reporter
HARDLY had moves to rescue debt-saddled Hanjin Heavy Industries and Construction Philippines, Inc. (HHIC-Phil) begun than the rehabilitation receiver resigned last week, citing creditors’ opposition to his appointment.
Hanjin Rehabilitation Receiver Stefani C. Saño filed on Wednesday his letter of irrevocable resignation with Branch 72 of the Regional Trial Court in Olongapo City.
“By this resignation, I hope that the creditor banks shall have no more issues to oppose and instead focus on the rehabilitation of Hanjin and keeping the jobs for over 3,000 employees,” Mr. Saño said in a press statement sent by e-mail.
“Magulo sila eh. Tinutulungan ko na gusto pa ako ipatanggal… (They have so many issues; I am helping them and yet they want me out…)” he said in a telephone interview last Thursday.
In his letter, Mr. Saño noted that “recent motions filed by parties raised the issues of competence, independence and conduct against” him, adding that “these accusations are bereft of factual and legal basis, but… do not merit refutation.”
“Interactions by the rehabilitation receiver with the [rehabilitation] petitioner [HHIC-Phil] and creditor banks show that they [banks] have a deep mistrust upon his person rendering ineffectual the performance of his duties, powers and responsibilities under the law.”
Sought on Sunday for more details, Mr. Saño said via Viber message that “only Metrobank (Metropolitan Bank & Trust Co.) filed to remove me.”
The court, the letter read further, should now direct HHIC-Phil and its creditors “to submit the names of their nominees to the position” of rehabilitation receiver.
“A timely, fair, transparent and efficient rehabilitation is of paramount importance to the HHIC-Phil, Inc. being a critical heavy industry affecting the welfare of the [over 3,000] workers and their families, the enormous debts to creditors and other stakeholders,” the letter read.
“Time is of the essence and the precious time of the Honorable Court cannot be spent on protracted debates and arguments to resolve the issue as to who should be the rehabilitation receiver. It will only overshadow the primary goal.”
Mr. Saño said in his statement that he had begun steps to help the troubled shipbuilder, asking Korea Development Bank last Jan. 29 “to transfer to Metrobank $45 million,” of which $32 million was “to cover the security for the loan granted by Metrobank to Hanjin” and the balance “to finish two ships in the shipyard for delivery to the owners and generate further funds to finish four more ships.”
Mr. Saño had noted last Jan. 18 that HHIC-Phil’s declared assets of about $1.5 billion compare to up to $412 million it still owed to Rizal Commercial Banking Corp. ($145 million); Land Bank of the Philippines (reported at $85 million); Metrobank ($70 million); BDO Unibank, Inc. ($60 million) and the Bank of the Philippine Islands ($52 million).

Analysts’ January Inflation, February Policy Rates Expectation

INFLATION likely slowed further in January as food prices sustained a decline, analysts said in a BusinessWorld poll, adding that this should enable the central bank to keep interest rates steady for the second straight meeting. Read the full story
Analysts’ January Inflation, February Policy Rates Expectation

DBS cites export slump, budget troubles as growth risks

THE ECONOMY will likely grow faster this year, a global bank said while flagging a sustained export slump and a reenacted budget as possible dampers of domestic activity.
In a report, DBS Bank said gross domestic product (GDP) growth may clock in at 6.5% in 2019, picking up from last year’s 6.2%. Consumption is expected to improve given that inflation has been easing, although full-year GDP expansion will still fall short of the government’s 7-8% goal.
Easing inflation will support household spending, coming from last year’s slowdown as commodity prices shot up faster than expected.
From a nine-year peak of 6.7% in September and October, inflation dropped sharply in the next two months to 5.1% in December, albeit still above the 2-4% target.
From a weak 5.2% climb in the third quarter, consumption growth improved to 5.4% during the last three months of 2018, which DBS took as a sign that softer household spending has bottomed out.
“As oil price has come down significantly and impact of higher excise taxes will finally wear off, inflation will ease further this year. Lower inflation and the upcoming midterm election to some extent will support consumption pickup this year,” DBS economist Masyita Crystallin said in a report published last week.
Despite the brighter outlook, Ms. Crystallin cited headwinds such as weak external trade amid subdued global demand, and possible hurdles to government spending due to the delayed passage of the 2019 budget.
“Delay of the 2019 budget could hurt investment sentiments… Budget is currently still under review and, if re-enacted, only a proportion of personal services, maintenance and operating expense, as well as capital outlays of regular programs and ongoing (multi-year) projects included in 2018 budget will be allowed by law,” DBS said.
Lawmakers in bicameral conference talks remain in a deadlock on the P3.757-trillion national budget, just one step away from legislative ratification and then for President Rodrigo R. Duterte’s signature. Currently, national government agencies are operating on a re-enacted 2018 budget, which leaves new infrastructure projects and programs unfunded.
Finance Secretary Carlos G. Dominguez III has said that the delayed budget has so far cost P46 billion worth of delayed projects in the first quarter, noting this would hurt growth for the period. The National Economic and Development Authority projects a 1.1-2.3 percentage point decrease in the full-year GDP print if the budget bill is not passed at all.
Ms. Crystallin pointed out that the budget delay puts big-ticket projects like the Metro Manila subway and the Mindanao Railway project at risk, despite strict timetables which economic managers wanted to stick to. Disrupted salary increases and funds for social services could also dampen growth prospects.
However, she did not sound the alarm bells just yet. “The impact on consumption (assuming budget approval in February) would be minimum and might be compensated by the increase in consumption due to easing inflation.”
The 45-day election ban on public works could likewise affect growth, the bank analyst added.
However, economic managers have said that they will ask the Commission on Elections to exempt flagship infrastructure projects in the “Build, Build, Build” pipeline from the poll ban so as not to disrupt spending plans and overall growth.
The economic team said the proposal will be discussed during the Cabinet meeting on Wednesday. — Melissa Luz T. Lopez

Agri dep’t seeking to tap drones for disaster damage validation

THE Department of Agriculture (DA) is seeking to establish a drone technology center with the help of universities, in order to map disaster-prone areas and facilitate faster field validation of damage caused to agriculture by calamities.
“We have an idea that there should be a fleet of drones or additional UAV (unmanned aerial vehicles) units in every region, so that if there is a need to validate a vast area, neighboring regions or provinces can work together,” Christopher V. Morales, Chief of the DA Field Programs Operational Planning Division (FPOPD), said in a statement on Monday.
“This (project) will be in collaboration with the DA Information and Communications Technology Service (ICTS) and state universities and colleges will possibly be tapped to be our partners,” Mr. Morales added.
Mr. Morales noted that a 50-hectare field can be covered by a quadcopter in 25 minutes, while a 300-hectare field can be covered by a single-engine fixed-wing drone in an hour.
A twin-engine fixed-wing drone, meanwhile, can cover 800 hectares in an hour and a half, and can monitor areas 15 kilometers from base.
“We started in 2015 and 2016 (with the drone initiative) and we were aggressive in organizing training sessions in 2017 and 2018. In fact, in 2017, we held a modular training on DRRM (Disaster Risk Reduction Management) which focuses on database management, geographic information systems, how to fly and operate drones, and analysis of remote sensing and satellite images with the field offices and attached bureaus and agencies,” Mr. Morales said.
He also said that drones were used to assess the damage of typhoons Lawin and Nina in 2016, Vinta in 2017 and Ompong in 2018.
Mr. Morales, however, said that with the limited funding, DA cannot immediately validate conditions in a very large area of 1.2 million hectares.
Currently, out of the 16 regional field offices (RFOs), two have a twin-engine fixed wing vehicle, while 10 RFOs have a single-engine fixed-wing vehicles, and all RFOs have quadcopters. — Reicelene Joy N. Ignacio

Japanese tractor maker Yanmar seeking partners in Southeast Asia

BANGKOK — Japan’s Yanmar Agribusiness Co Ltd. said on Tuesday that it plans to expand its business in South and Southeast Asia beginning this year with its newly launched tractors.
Yanmar Agribusiness President Hiroaki Kitaoka said that the company is looking for distributors in the Philippines, Malaysia, Vietnam, Myanmar, Cambodia, and Bangladesh.
“We would like to find the great distributors in those countries,” Mr. Kitaoka said during the company’s launching of its 51-horsepower YM351A and 57-horsepower YM357A tractors.
Yanmar equipment is assembled by the company’s partner in India, ITL, in which Yanmar has a 30% stake.
“Our mission is to go to South Asia and Southeast Asia including Indonesia and Thailand next,” according to Mr. Kitaoka.
The tractors come with a Smart-Assist remote which allows tractor users to monitor the equipment with their smart phones, which is expected to reduce downtime, thereby increasing earnings.
Geolocation technology issues warnings when the equipment is operating outside the set parameters, he added.
Both tractors are appropriate for paddy, dry field and hauling, with a maximum turning angle of 55 degrees.
“If downtime is long, customers will lose productivity,” Yanmar Agribusiness Manager Osamu Omoro said.
“Customers can maintain income and can work in a very long period,” Mr. Omoro added.
Yanmar has been operating in the Philippines since 2014.

PLDT hikes capex to P70B for 2019

By Denise A. Valdez
PLDT, Inc. is raising its capital expenditure (capex) by a fifth to at least P70 billion for this year, mostly to fund its network expansion plans.
Manuel V. Pangilinan, chairman, president and chief executive officer of the listed telecommunications giant, and chairman of Metro Pacific Investments Corp. (MPIC), told reporters on Friday the whole group will record a bigger budget for this year.
“I don’t know what the aggregate number is… But if you add the group’s capex, it’s going to be more than a hundred billion this year… PLDT alone will account for at least P70 billion,” Mr. Pangilinan said when asked about MPIC’s capex for 2019.
A P70 billion capex will be 21% higher than the “record” P58 billion capex for 2018. Around 54% of last year’s budget was dedicated to its wireless business and 46% to fixed broadband.
Mr. Pangilinan said higher capex for PLDT will be used for expansion projects such as the rollout of fourth generation (4G) and fifth generation (5G) networks.
“(The capex is) mainly (for) fiber-to-the-home (FTTH) on the fixed side. And for the wireless, it’s making complete substantially our 4G and start constructing the 5G network. So it’s a continuous exercise,” Mr. Pangilinan said.
He also said the government’s initiative to encourage common tower providers will reduce the burden on telcos to build their own cell sites.
“I think it will help our capex, although it’s not a very significant amount of money, but it will help our capex somewhat. So we’re willing to cooperate with these new tower companies,” the PLDT chief said.
Fitch Ratings said in a November report it expects telcos PLDT and Globe Telecom, Inc. to invest higher this year because of the entry of a “third telco” — the Mislatel Consortium.
“Fitch expects this to temper revenue growth and raise the capex pressure on PLDT Inc. (BBB/Stable) and Globe Telecom, Inc. (BBB-/Stable),” the credit rater said then.
Globe had a capex of $950 million (about P49.8 billion) last year. While it has not disclosed its 2019 capex yet, Globe President, Ernest L. Cu previously said they were eyeing a budget “close to it (2018 capex)” for this year.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.

France makes biogas support conditional on costs

PARIS — France is ready to provide 7 to 9 billion euros ($8-10 billion) of subsidies for renewable gas but only if the industry can substantially lower its costs, the government said on Friday.
Produced from methanisation of agricultural and other biological waste, biogas still costs about four times more than natural gas imported by pipeline or LNG tankers from countries like Russia, Norway, Algeria or Qatar.
Under its draft “PPE” 10-year energy plan, the government set a target for biogas to account for seven to 10 percent of gas consumption by 2030 from well below one percent today if costs can fall rapidly.
Gas grid operator GRTgaz said in a statement the draft PPE was worrying for the outlook of the nascent biomethane industry.
It said a goal to reduce costs to 67 euros per MWh by 2023 was way too ambitious. Current tariffs are around 90-95 euros per MWh.
“No other renewable energy sector that is mature today has seen its development conditional on such terms,” GRTgaz said.
It said the PPE did not account for the fact that biogas is non-intermittent, can easily be stored, helps deal with waste and provides income for farmers.
“As it is, the PPE trajectory threatens the development of this young industry,” GRTgaz said.
Through a system of tenders, the government wants to boost the amount of biogas produced in France from 5.4 terawatt hour in 2016, to 14 TWh in 2023 and 24 to 32 TWh in 2028. It also wants to boost the amount of biogas injected in the gas grid from virtually nothing today to more than half of production.
Although France is way behind biogas pioneers like Denmark and Germany, the sector is growing quickly. The amount of biogas injected in GRTgaz’ pipelines rose 75 percent to 714 GWh last year. Installed capacity is 1.2 TWh at 76 sites, and there is a pipeline of 661 new projects for a total capacity of 14 TWh.
A year ago, French utility Engie’s CEO Isabelle Kocher said biogas has the potential to grow from about one percent of gas consumption in France to 10 percent by 2025, 30 percent by 2030 and 100 percent by 2050. Over the next decade, the government wants to reduce total French gas consumption from 493 TWh in 2017 to about 420 TWh in 2028 through energy savings and better insulation. — Reuters

Fashion conscious


FASHION shows our desires and our means to achieve them through carefully selected items. In turn it also begins to see our values and how we seek to live them. In an exhibit called Fashion Revolution at the Metropolitan Museum of Manila, we are given alternatives on how to live more sustainably through the clothes that we interact in and interact with.
The exhibit, which runs until early April, is a collaboration between The Swedish Institute and various Swedish fashion brands such as H&M, Houdini, and Babybjorn. Along with that, various exhibits are found around a gallery in the second floor to reflect safer alternatives to cleaning clothing (a light pumice stone to “dry-clean” sweaters, for example), or clothes made using alternative materials, such as recycled paper.
H&M, as a global giant, is usually pilloried in the press for alleged unsustainable and unethical practices with regards to the environment and labor. However, Dan Mejia, Head of Communications and Press for H&M in the Philippines, said, “Most of it comes from a lack of information of what H&M is really doing and has been doing since 1990.”
He cites, for example, that H&M requires its partner factories (outsourcing for cheap labor is one of the controversies that H&M faces) to sign sustainability commitments before H&M works with them. He also cited recent developments in production: for example, he points to H&M’s use of organic cotton and its clothing drive. H&M has collection boxes in its stores where shoppers are encouraged to drop their discarded clothing in exchange for discount vouchers — these clothes will be processed to create new garments. The initiative has been in place since 2013. According to Mr. Mejia, the company has managed to collect 18,000 tons of clothing this way; equivalent to 89 million T-shirts.
“Our aim for 2030 is to be able to use 100% recycled material. To be able to [do] that, we need to radically increase the recycling of existing textiles,” said Mr. Mejia.
H&M’s exhibit section in Fashion Revolution includes various clothes made out of recycled materials called the Conscious Exclusive collection. The materials are made from a variety of sources, from discarded fishing nets to coastline waste. The materials have been processed to look like real, actual textiles, resulting in some flowy, stunning gowns.
Mr. Mejia also points out H&M’s continued fight for living wages in the countries where it sources its clothes. Speaking about this practices, and the required cooperation from the rest of the world, he said, “What we just need to do… get all these brands to come together and at the same time, to get the support of the governments.”
The Swedish Ambassador, Harald Fries, told BusinessWorld, “This exhibition is about a new business model for fashion, and to go away from what we call a linear model.”
The traditional linear model follows a make, use, and discard line; while the exhibit calls for a more circular model, where the discarded products can become useful again.
It’s no surprise that a country like Sweden, famously mindful of its environment, would care about the issue.
Said Mr. Fries, “Sweden has a long tradition of caring not just for yourself and your core family, but for society,” he said, pointing out the country’s welfare system. “I think there is a sense that you don’t only look at yourself… look at the whole society. Look at nature, your environment; in the whole country, in the whole world.”
Mr. Mejia, said, “As a human being, as a customer, we all have needs. We need to look good, we like to feel good; but we have to do it responsibly.” — Joseph L. Garcia

Bourse operator to introduce PSE total return index

By Arra B. Francia
Reporter
THE PHILIPPINE Stock Exchange, Inc. (PSE) will be introducing a new index that will help track the overall return of the main index, as part of efforts to cater to the needs of a broader investor base.
In a statement over the weekend, the bourse operator said it will launch the Philippine Stock Exchange index (PSEi) Total Return Index (PSEi TRI). The new index will have the same components as the PSEi and will integrate regular and special cash dividends of index components on ex-date.
The PSEi TRI will measure the overall return of the index, considering both capital gains and dividend payments, and whether these dividends are reinvested back into the PSEi.
“We have always been focused on investment gains from price appreciation. As done in other markets, we want to show the bigger picture on the profitability of stock and index investing,” said PSE President and Chief Executive Officer Ramon S. Monzon in a statement.
The PSEi TRI uses 1,000 as the base value, with Dec. 28, 2007 as the base year. This places the PSEi TRI at 2,771.01 on Dec. 28, 2018, indicating a 10-year cumulative gain of 417.6%, higher than the PSEi’s 298.6% increase from 2008 to 2018.
The PSE also noted that a five-year computation of the PSEi TRI will show a growth of 38.7%, against the 26.8% uptick of the PSEi.
Any changes to the PSEi will also be reflected on the PSEi TRI. The new index will be available on the PSE website no later than 5 p.m. of each trading session.
Sought for comment, Timson Securities, Inc. equities trader Jervin S. de Celis said this could affect the strategies of investors.
“TRI’s return is almost always higher than the price return performance of an index since TRI gauges returns if dividends are reinvested,” Mr. De Celis said in a mobile phone message.
“So for active investors who are outperforming the return of an index, TRI might make their fund look like it’s performing less or underperforming. In turn, these investors may change their strategy by shifting to other low-cost funds.”
The PSEi TRI is part of the bourse operator’s efforts to launch more PSE indices this year. The PSE said it is also reviewing the current sector index classification.
“We want our sectoral indices to be more representative of the industries they belong to. This will be beneficial to fund managers in planning and executing their investment strategies. We hope to announce the new sector classifications by midyear,” Mr. Monzon explained.
The PSE indices to be released will be available for index licensing. Collective investment schemes that track PSE indices or use PSE indices as the underlying index for their fund will be charged with license fees depending on the fund, as well as the size of the fund’s net asset value.
“Index licensing is not something unique to the PSE. Several other exchanges globally charge for the intellectual property of the indices they develop and maintain,” Mr. Monzon said.
The PSE chief said last year that they will introduce the licensing scheme for all funds tracking the PSEi starting this first quarter. The licensing fee will be equivalent to three basis points of the total assets under management of any PSEi-tracking fund.

T-bills on offer may fetch lower rates on dovish Fed

YIELDS ON the Treasury bills (T-bill) on offer today are expected to slide after the US central bank signalled a dovish stance on hiking its borrowing costs at its policy review last week.
The Bureau of the Treasury (BTr) is offering P20 billion worth of T-bills on Monday, broken down into P6 billion each for the three- and six-month papers and another P8 billion for the one-year instruments.
Traders interviewed before the weekend said rates of the T-bills on offer today will likely move lower from the previous auction, with one saying yields could slide by 5-10 basis points (bp).
“The rates of the T-bills will slide…as the demand is still expected to be strong at around twice the offer size,” the trader said in a phone interview Friday.
Last week, the Treasury borrowed just P18.397 billion out of the P20 billion it wanted to raise at its T-bills auction, partially awarding the shortest tenor amid lukewarm demand as investors continued to park their funds in the longer-dated securities.
At that auction, the rate of the 90-day papers climbed 11.6 bps to 5.534%, while the 182- and 364-day IOUs fetched lower rates of 5.892% and 5.946%, respectively.
Based on the PHP Bloomberg Valuation Service Reference Rates, the three-month, six-month and one-year papers were quoted at 5.436%, 5.813% and 5.977%, respectively, on Friday.
The trader said yields on the T-bills will move lower as investors price in the results of the policy meeting of the US Federal Reserve last week.
As expected, the Fed kept interest rates at its two-day review last week, saying it will be “patient” in raising its borrowing costs this year amid “conflicting signals” on the US economic outlook.
“We continue to expect the American economy will grow at a solid pace in 2019, although likely slower than the very strong pace of 2018,” Fed Chair Jerome Powell said in a press conference following the two-day meeting.
Meanwhile, another trader said market participants will watch out for the domestic inflation data for January to be released on Tuesday.
A BusinessWorld poll of 12 analysts yielded a 4.5% median estimate for headline inflation, which, if fulfilled, will be slower than the 5.1% tallied in December.
The expected deceleration in inflation was mainly attributed to the sustained decline in food prices, which helped offset higher oil prices due to pickup in global crude prices and new tranche of the fuel excise tax implemented during the month.
The government plans to raise P360 billion this quarter through domestic means. Some P240 billion will be borrowed through 12 weekly T-bill auctions during the three-month period, while P120 billion worth of Treasury bonds will also be issued through six fortnightly auctions.
The state wants to borrow P1.189 trillion in 2019 to fund its spending plans. Of the amount, 75% will be sourced domestically while the remainder will be from foreign creditors. — Karl Angelo N. Vidal

EU seeks to placate Washington by approving soybeans for biofuel

BRUSSELS/NEW YORK — The European Commission said on Tuesday it had concluded that US soybeans can be used in biofuels in the European Union, part of the bloc’s push to improve strained trade relations with the United States.
However, industry sources said it was unlikely to lead to a flood of additional US soybean imports into Europe.
US President Donald Trump agreed in July not to impose tariffs on EU car imports while the two sides explored ways to boost trade including a possible deal to remove tariffs on non-auto industrial goods and to boost EU imports of US soybeans and liquefied natural gas.
The Commission said in a statement the recognition of US soybeans for use in biofuels was valid until July 1, 2021, but could extend beyond that date as long as they met sustainability criteria set in new EU rules in the 2021-2030 period.
“Today’s decision is new proof that the European Union is delivering on our commitments,” a Commission spokesman said.
Currently, the United States exports soybeans to the EU for animal feed but the soybean oil byproduct has to be shipped back because Europe does not allow it to be used for fuel. The new rule would change that.
“So, on its face, it does nothing to increase soybean exports in the EU,” a US-based lobbyist for the biodiesel industry said. “It just helps European farmers capture the full value and saves US farmers shipping costs.”
One US Congressional staffer described the move as more the removal of a trade barrier.
EU biofuel producers used an estimated 400,000 tonnes of soybean oil for biofuel production in 2018 against some 5.9 million tonnes of rapeseed oil, the main feedstock, according to Claus Keller of German commodity analysts FO Licht.
“I think the EU move will be positive for US soybean sales prospects to the EU but it will not open a floodgate,” he said, adding that sales would be influenced by US-China trade talks and on the future for Argentine biodiesel, which faces duties in the United States and could face measures in Europe.
The Commission, which negotiates trade deals for the 28-nation EU, has said the July agreement led to a 112 percent rise in US soybean imports in the second half of 2018.
The United States is Europe’s main supplier, with a 75 percent share of EU soybean imports.
The increase has been driven by a slide in the US soybean price, which slid after China imposed higher tariffs on US beans in its trade row with Washington, rather than because of any concerted action by the EU, analysts said.
The EU imports about 14 million tonnes of soybeans per year as feed for animals. — Reuters

1...9,9499,9509,951...12,787Page 9,950 of 12,787
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube