Brazil’s ethanol production premium surpasses 200 points over sugar
A 7.8percent jump in Brazil’s Center-South hydrous ethanol price combined with a 6.8percent appreciation in the real against the dollar from March 10 to April 1 were the primary reasons for ethanol’s spike in production premium. NY11 May sugar futures posted a meager 1.4percent price rise over the same period.
The ethanol production premium to sugar in Brazil moves closer to 240 points if decarbonization credits, CBIOs are added into the premium calculation. The CBIO, equivalent to 1 mt of carbon dioxide not released in the atmosphere, is an instrument issued by biofuel producers and importers to ensure Brazil attains its future decarbonization targets.
“Although the 2022-23 crop should witness a relatively high sugar mix around 42-44 percent compared to 45 percent for the 2021-22 crop, the recent favorable premium for ethanol production over sugar production will encourage mills to divert sucrose to ethanol production for the first few months of the crop cycle,” said a Sao Paulo-based trader.
Hydrous ethanol ex-mill Ribeirao Preto converted into raw sugar equivalent provided an average 0.90 cent/lb premium to NY11 front month sugar futures in H2 March, according to data from S&P Global Commodity Insights.
Researchers in Japan reveal tools to enhance rice production
Researchers from the National Agriculture and Food Research Organization (NARO) in Japan might have found a solution for rice producers reoccurring challenge of “chalky grains” through nitrogen fertilizer.
Hiroshi Nakano, a researcher at the Kyushu Okinawa Agricultural Research Center, NARO and partners share their research in a recently published study in the Agronomy Journal.
Chalky grains are a result of rice plant exposure to elevated temperatures. Once exposed, these grains are easily crushed throughout the milling process, resulting in a loss of profits from the damaged grains.
The correct amount of nitrogen fertilizer is key, according to the Japanese researchers. Too much nitrogen, and the rice protein levels will increase. The quality of rice is then at stake because grain thins when cooked. Too little nitrogen, and the rice grain is back at square one: a chalky grain.
Useful tools for farmers to predict chalky grain percentage was one focus of the research.
Dairy farmer slams covid advice to reduce milk production during pandemic
Dairy farmer and artisan cheesemaker has told GB News’ Nigel Farage they were told to “reduce” milk production during Covid but now are being urged to “increase” yield as the cost of milk is set to rise by 50 percent.
Dairy prices are set to soar due to supply chain disruption and the cost of living crisis, pushing the cost of four pints of milk up from £1.15 to between £1.60 and £1.70
Dairy industry bosses also warn a 250g pack of butter could increase from £1.55 to more than £2.
Nigel Farage said he thought “supermarkets are squeezing dairy farmers” and asked if the claims by industry bosses were true.
Tea farmers hamstrung by closure of processing plant
A decade ago, Lokendra Poudel and other tea farmers in the eastern hill district of Dhankuta decided to build a tea factory so they wouldn’t have to send their green tea leaves outside and constantly haggle with traders.
The plan materialised and the factory opened in Pakhribas Municipality-4, Ramche. Operated by Ramche Organic Tea Producers Cooperative, it gained fame for making the best organic tea in the area, and demand for its products rose.
But the good times didn’t last long. A few years later, the factory began coming apart due to internal conflict, mismanagement and opaque transactions. Six months ago, the factory known for its fine organic tea shut down.
Farmers say their investments are at risk.
“I contributed 2 ropanis of land and Rs800,000 in cash to establish the factory,” said Poudel. “We had hoped that the factory would be a big relief to tea farmers as it would pay reasonable prices for their harvests.”
The factory had been racked by internal conflict for a long time. The Covid-19 pandemic dealt another blow to the ailing factory as production came to a halt.
Madan Rai, chairman of the cooperative and a senior farmer, said that the factory was launched by a group of 62 tea farmers, and it used to buy green tea leaves grown on 2,000 ropanis in Pakhribas, Muga, Falate, Sanne and Ghorlikharka.
The factory received a Rs4 million grant from the Unnati project for its construction. The federal and provincial governments also provided assistance to buy machinery.
Oil production in Iran reaches pre-sanction levels
Iran’s oil production has recovered to the level it was at in 2018, before the U.S. unilaterally withdrew from a nuclear deal and reimposed sanctions on the country, a top Iranian official reported Monday.
“Oil production has reached pre-sanctions figures, despite economic pressures,” said Mohsen Khojastehmehr, CEO of the National Iranian Oil Company (NIOC), quoted by state news agency IRNA on Sunday.
Iran is currently engaged in negotiations to restore the 2015 nuclear deal that would grant it much-needed sanctions relief in return for major curbs on its nuclear program.
The U.S., under then President Donald Trump, unilaterally withdrew from the deal in 2018 and reimposed stringent sanctions, prompting Iran to begin rolling back on its commitments under the deal the following year.
Production has been restored to the pre-sanctions level of 3.8 million barrels per day (bpd), Khojastehmehr said, after it had sharply declined following the reimposition of sanctions.
President Ebrahim Raisi’s government invested $500 million to restore facilities and increase production to pre-sanctions levels within six months, he added.
Oil Minister Javad Owji said Friday that oil revenues for the last Iranian calendar year, which came to a close on March 20, registered $18 billion, about 2.5 times more than the previous year.