cHEMICAL REPORT, FEBRUARY 2025 TEST

December was a relatively quiet month due partly to the holiday season but also fitting the usual historical trend where volumes typically decline after November as the season draws to a close and we expect volumes to remain relatively subdued until March when the new crop will enter the market. Regarding the new crop, approximately 85% of the soybean crop area has now been sown which according to the latest estimates is around 18.4 million hectares—200,000 hectares less than last year. In-line with the recent decline in the Western CPP rates, vegetable oil freight rates have also softened, with one January vessel fixed at $59 PMT for 40,000 mts (2/2) into India, down from the mid/high $60’s a month earlier. Currently, the majority of volumes are still originating from Argentina, where river water levels have shown slight improvement and forecasts for Brazil's new crop remain optimistic, driven by favorable weather conditions there. Whether this translates into increased export volumes is uncertain, as a growing share of production is being diverted to meet domestic Brazilian biofuel mandates. Looking ahead, January shipments from South America are largely finalized and attention now on stems for first half of February dates, particularly for cargoes bound for India.