Archer Daniels Midland Company and Cargill have reached agreement to launch a joint venture to provide soybean meal and oil for customers in Egypt.
The joint venture would own and operate the National Vegetable Oil Company soy crush facility in Borg Al-Arab along with related commercial and functional activities, including a separate Switzerland-based merchandising operation that would supply soybeans to the crush plant. Cargill is currently expanding the plant from 3,000 metric tons to 6,000 metric tons of daily crush capacity. The plant will be able to produce higher-protein soybean meal while reducing the need for soybean meal imports into Egypt.
The joint venture will be managed as a standalone entity consisting of equal ownership by ADM and Cargill, with a management team reporting to a board of directors appointed by the two parent companies. The deal, which is not yet complete, is subject to regulatory review. The companies hope to formally launch the joint venture in mid-2018.
The Buenos Aires Cereal Exchange has updated its soybean production estimate for Argentina and lowered the output to 47 million metric tons. In the previous week, the esimate was at 50 million metric tons.
On Monday, February 26, China’s General Administration for Quality Supervision, Inspection and Quarantine (GAQSIQ) announced the lifting of a ban on wheat imports from six Russian regions. The ban had been in force since 2016.