China’s New Measures Essentially Ban Fertilizer Exports
Urea futures are traded on the Chinese market and have been at record highs.
But levels slip Thursday to a two-week low after a customs announcement released on Wednesday. Now, inspection certificates are required to ship fertilizer, which is viewed essentially as an export ban.
A list of 29 products related to fertilizer now require an inspection and quarantine report or certificate before being shipped as of October 15.
China is the world’s largest phosphate exporter with top takers being countries like India and Pakistan; about 4.8 MMT of DAP have been shipped from January-August.
Fertilizer prices have been rising across the world with China included; the country has tried to ease the rising costs to no avail such as releasing potash reserves and asking firms to provide sufficient power to fertilizer plants.
FBN’sTake OnWhat It Means:The world is dealing with high fertilizer input costs and now with China’s essential ban, an easing anytime soon is more unlikely. Rising energy costs and shortages across the globe are contributing to the high prices, and we are concerned about what measures this will have on acreage for 2022.
Mexico Supreme Court Ratifies Glyphosate and GMO Ban
Mexico's Supreme Court unanimously denied four appeals filed against the judicial decision to ban the sowing of GMO corn and the use of glyphosate.
The appeals were presented by Bayer, Syngenta, and Dow among others.
The companies have mounted dozens of legal challenges over the years to remove the measure that prevents the use of GMO corn and the herbicide.
Another presidential decree issued late last year will also ban imports of GMO corn from January 2024.
FBN’sTake OnWhat It Means:Farm and trade groups warn of the negative effects of the GMO and glyphosate bans, as Mexico depends heavily on yellow corn imports. Last year, the country imported more than 16 million tonnes from the U.S., almost all of it genetically modified. Regulators worldwide have determined glyphosate and GMOs to be safe.
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