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Palm production likely to fall in June due to better demand
The price of palm oil in Malaysia rose on Wednesday as a result of improved demand, a rally of soyoil and a possible reduction of production for June. By midday, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange for September delivery had gained 66 Ringgit or 1.66% to 4,034 Ringgit per metric ton. "Overall, the market has improved. Demand has returned to normalcy." Our preliminary assessment of lower production in the month of June, coupled with the rallying soyoil prices, helped keep palm prices competitive, said Paramalingam Supramaniam at Selangor brokerage Pelindung Bestari. Dalian's palm oil contract, which is the most active contract, gained 0.79%. The Chicago Board of Trade's (CBOT) soyoil price was 0.71% higher. As palm oil competes to gain a share in the global vegetable oils industry, it tracks the price fluctuations of competing edible oils. According to AmSpec Agri Malaysia (an independent inspection company), exports of Malaysian products containing palm oil rose by 4.3% in June compared to the previous month. Intertek Testing Services reported a 4.7% increase. The statistics bureau reported that Indonesian crude palm oil and refined palm oils exports increased by 53% from a year earlier in May. This was because the tropical oil began trading at a lower price than its competitors, which boosted demand from major buyers. Indonesia increased its crude palm oil benchmark price to $877.89 a metric ton, up from $856.38 a metric ton, in June. A trade ministry regulation published on Monday showed this increase. The palm ringgit's trade currency, the dollar, fell by 0.41%, making the commodity more affordable for buyers who hold foreign currencies. Technical analyst Wang Tao stated that palm oil could retest the resistance level of 4,015 Ringgit per metric tonne. A break above this would lead to gains in the range between 4,041 Ringgit and 4,063 Ringgit.
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Iron ore futures are up on a supply decline, but China's property woes limit gains
Iron ore futures rose on Wednesday, as exports from Australia and Brazil fell. However, the persistent weakness of China's real estate market limited gains. As of 0357 GMT, the most traded September iron ore contract at China's Dalian Commodity Exchange was trading 0.77% higher. It was 716 yuan (US$99.91) per metric ton. Singapore Exchange benchmark August iron ore was up by 0.86% to $94 per ton. Everbright Futures, a broker, said that iron ore exports from Australia and Brazil, two of the world's top iron ore producers, have decreased, while global iron ore shipment has also declined. Everbright reported that hot metal production, which is a measure of iron ore consumption, has continued to rise month-on-month. China's factory output has increased since November 2024, according to official PMI and Caixin PMI. Even so, the resale prices of homes in China dropped at a faster rate in June. Meanwhile, new home price growth slowed down, highlighting persistent weakness on the property market in China. Analysts at ANZ also noted that a proposed by the China Iron & Steel Association restricting exports of certain products of steel could increase supply in the country and potentially pressure prices. Coking coal and coke both gained 0.92% on the DCE. The benchmark steel prices on the Shanghai Futures Exchange have risen. Rebar climbed 1.44%; hot-rolled coil jumped 1.12%; wire rod grew by 0.45% and stainless steel jumped 1.04%.
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EU adds international CO2 credits as part of next climate goal
A draft of the proposal revealed that the European Commission would propose on Wednesday an EU climate goal for 2040, which for the first will allow countries to utilize carbon credits from developing countries to meet a small share of their emission goals. The draft seen by said that the European Union executive will propose a legally binding target to reduce net greenhouse gas emission by 90% by 2040 from 1990 levels. This is to keep the EU on track to achieve its core climate goal of reaching net zero emissions in 2050. The draft EU proposal, however, includes flexibility that will soften the 90% emission target for European industry, following pressure from France, Germany and other governments, including Italy, Poland, and the Czech Republic. Prior EU emission targets were based solely on domestic emission reductions. The draft reflects Germany's public position that up to three percentage points of 2040 targets can be covered through carbon credits purchased from other countries via a U.N. supported market. This reduces the effort required for domestic industries. The draft stated that the carbon credits will be phased-in from 2036. "EU will propose legislation setting robust and high integrity standards and criteria, as well as conditions on origin, timing, and use of these credits," it said. The report said that countries would be given more flexibility in choosing the sectors of their economy that contribute most to the 2040 target. Climate change has made Europe one of the fastest-warming continents in the world. A heatwave that hit the continent this week caused wildfires, disruption and chaos. But Europe's aggressive policies to combat the temperature increase have stoked the tensions among the 27 member bloc. The European Commission's climate agenda is a way for the European Commission to improve Europe’s competitiveness and safety. However, some governments and legislators say that industries already struggling with high energy prices and U.S. tariffs cannot afford stricter emission rules. The draft stated that "Decarbonisation not only is crucial for the environment, but it can also be a key driver of growth in the economy when integrated with policies on industrial, trade, and competition." Un spokesperson for the Commission declined to comment on this draft which may change before publication. Carbon credits can be generated through projects that reduce CO2 emission abroad, such as forest restoration projects in Brazil. These carbon credits then raise money for these projects. Investigations have revealed that some credits did not deliver the claimed environmental benefits. The EU's Climate Science Advisors oppose counting them towards 2040 and say that spending money on carbon credits from abroad would divert investment away from local industries. EU legislators and countries must agree on the 2040 target. This lawmaking process may take many years, but by mid-September the EU must submit to the U.N. its new 2035 climate goal - which should be derived directly from the current 2040 target - as the Commission had stated. (Reporting and additional reporting by Michel Rose, editing by Barbara Lewis.)
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Oil prices remain unchanged as OPEC+ increases weigh on the market
The price of oil futures was little changed on Tuesday as the markets considered the expectations for more supply next month from major producers, a weaker U.S. Dollar and a mix bag of economic indicators and market indicators coming from the U.S. Brent crude rose 2 cents to $67.13 a bar at 0345 GMT while U.S. West Texas Intermediate Crude fell 1 cent, down to $65.44 a bar. Brent oil has fluctuated between a high and a low of $69.05 per barrel since June 25. This is because concerns about supply disruptions have diminished following the ceasefire agreement between Iran and Israel. Sources said that American Petroleum Institute data released late Tuesday showed U.S. crude inventories had increased by 680,000 barrels over the past seven days, at a period when stocks are typically low during the summer season. "Today's oil prices are influenced by a combination of factors, including a potentially increasing OPEC+ production, unclear U.S. stock signals, an uncertain geopolitical scenario, and macro policy ambiguity," stated Phillip Nova Senior Market Analyst Priyanka Sahdeva. Investors have already factored in the planned increases by the Organization of the Petroleum Exporting Countries (OPEC+), which includes Russia. They are not likely to be caught off guard again soon, said Ms. Sher. Four OPEC+ source told us last week that the group will increase output by 411,000 barrels a day when it meets next month on July 6. This is a similar amount as what was agreed upon for May, June and even July. According to Kpler data, the market has already seen the effects of previous OPEC+ increases. Saudi Arabia, which is the largest oil exporter in the world, increased its shipments by 450,000 bpd in June from May. This was the highest level in over a year. Sachdeva said that, "With geopolitics at a minimum for the moment, oil futures are likely to trade in a tighter band this week as global economic worries persist. An easing dollar is the only exception which could extend any upward momentum." The greenback The number of people who are unemployed has fallen to its lowest level in three and a half years A weaker dollar could support prices, as it would encourage buyers to pay in other currencies. Tony Sycamore is an analyst at IG. He said that the Federal Reserve's interest rate reductions in the second half will be influenced by the non-farm payroll data released on Thursday. Lower interest rates would spur economic activity, which in turn would boost oil demand. The Energy Information Administration will release official data on the U.S. stockpile of oil by Wednesday morning at 10:30 am ET. ET. (Reporting and editing by Christian Schmollinger; Trixie Yap, Singapore; Sudarshan Varadahan in Singapore)
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PTTEP Hires Velesto’s Jack-Up Rig for Drilling Campaign off Malaysia
Malaysia’s oil and gas services Velesto has secured a drilling contract for its NAGA 5 jack-up drilling rig by PTTEP HK Offshore and PTTEP Sarawak Oil, collectively referred as PTTEP, for its 2025 - 2026 drilling campaign in Malaysia.Under the contract, Velesto will assign NAGA 5, one of its premium jack-up rigs, to drill a firm 15 wells with operations scheduled to commence in June 2025.The latest award follows Velesto’s recent announcements for NAGA 4 and NAGA 8 in May 2025, further strengthening the group’s fleet utilization outlook.Velesto continues to benefit from rising regional demand for jack-up rigs and anticipates a more active second half of 2025, supported by a robust tender pipeline and stable client activity.NAGA 5 is a premium independent-leg cantilever jack-up drilling rig with a rated operating water depth of 400 feet and drilling depth capability of 30,000 feet.“We thank PTTEP for their continued confidence and the opportunity to support their drilling operations in Malaysia. Our focus remains on safe, reliable execution, driven by consistent delivery across campaigns.“With several rigs under long-term contracts, we remain committed to operational discipline and value-driven execution that creates sustainable returns for our shareholders,” said Megat Zariman Abdul Rahim, President of Velesto.
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Copper gains as traders continue to ship ahead of potential US tariffs
On Wednesday, copper prices rose at the London Metal Exchange (LME) and Shanghai Futures Exchange, as traders were expected to continue to rush metal shipments into the U.S. before potential import tariffs. This would further reduce inventories that are already very low. As of 0105 GMT the most traded copper contract on SHFE rose 0.62%, to 80,520 Yuan ($11238.43), per metric ton. This is the highest price range in 2025 so far, around the second half of March. The LME's three-month copper also increased 0.12%, to $9,945.5. Low copper inventories in the SHFE and LME, along with the continued shipment to the U.S. prior to the imposition on import tariffs, have supported the price. Copper Stocks Copper inventories in LME-registered storage shed 66% between the middle of February and now stand at 91 250 tons. In the warehouses monitored, the SHFE has also seen a 66% drop in stock since early March. The summer months are usually the time when copper inventories in China tend to increase due to a low season demand. ANZ reported that "U.S. Treasury Sec. Scott Bessent stated that Washington's negotiation with Beijing would focus first on reciprocal duties, and then on duties on raw materials such as copper." "A delayed tariff decision would justify a premium for U.S. Copper, giving traders more shipping time before levies are implemented." SHFE aluminium rose 0.61%, to 20,685 Yuan per ton. Tin gained 0.4%, to 268,420 Yuan. Lead increased by 0.2%, to 17,170 Yuan. Nickel grew by 0.16%, to 120,580 Yan, while Zinc fell 0.4%, to 22,165 Yan. LME aluminium rose 0.33%, to $2607 per ton. Lead gained 0.2%, to $2042, while zinc grew 0.06%, to $2715.5. Click or to see the latest news in metals, and other related stories. Data/Events (GMT 0900 EU Unemployment May Rate ($1 = 7.1647 Chinese Yuan) (Reporting and Editing by Rashmi aich; Reporting by Hongmei Li)
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Investors weigh Fed rate stance as they assess US data and gold prices.
The gold price fell on Wednesday, as investors waited for U.S. employment data and assessed Federal Reserve Chairman Jerome Powell's cautious approach to rate cuts. However, a weaker greenback helped limit losses on bullion priced in dollars. As of 0217 GMT spot gold fell 0.2% to $3,330.68 an ounce while U.S. Gold Futures dropped 0.3%, falling to $3,340.60. Holders of other currencies can now afford to buy bullion because the U.S. Dollar index has fallen to its lowest level in over three years. Gold prices have been consolidating since posting their strongest gains in the past two weeks. "The overall trend bias continues in favour of the upside at this time," said Ilya SPivak, Tastylive's head of global macro. Powell said that the U.S. Central Bank will "wait and see" how tariffs impact inflation before it lowers interest rates. This is a further rejection of President Donald Trump's demand for immediate rate cuts. The number of U.S. jobs opened in May was unexpectedly higher, but the decline in hiring is a sign that the labour markets has shifted down gear due to the uncertainty surrounding the Trump administration’s tariffs against imports. Investors will now be awaiting the U.S. ADP Employment data due later today, as well as nonfarm payroll numbers on Thursday, for more insight into the labour market. Spivak stated that the biggest risk to gold is an unexpectedly high (NFP) result, but this seems unlikely. The U.S. Senate Republicans passed Trump's tax and spending bill Tuesday by a narrow margin. It is a package that cuts taxes, reduces social safety net programs, increases military expenditures, while adding $3.3 billion to the national debt. Trump was optimistic on Tuesday regarding a possible trade agreement with India, but sceptical about a similar deal with Japan. He also said that he would not consider extending the deadline of July 9 for countries to reach trade agreements. Spot silver fell 0.1% per ounce to $36.01, platinum dropped 0.4% at $1,344.91, and palladium rose 0.4% to $ 1,104.92.
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Investors' expectations for the OPEC+ summit have not changed much in terms of oil prices
The price of oil futures was little changed on the day of Wednesday, as investors were cautious ahead of this week's meeting of major producers to decide output levels for August. Brent crude rose 1 cent to $67.12 a bar at 0124 GMT. U.S. West Texas Intermediate Crude fell 5 cents, falling to $65.40 a bar. Analysts said that demand expectations were boosted on Tuesday by a survey conducted by the private sector, which showed that factory activity in China, world's largest oil importer, increased in June. Brent oil has fluctuated between a high and low of $68.40 and $66.34 a barrel since June 25 as fears of disruptions to supply in the Middle East region producing region have diminished. Oil prices are in a tight range, as there is less geopolitical uncertainty and more nervousness about what OPEC might do to increase production. This was said by Phil Flynn. Senior analyst at Price Futures Group. The price has been held down by the expectation that the Organization of the Petroleum Exporting Countries (OPEC+) and its allies, including Russia, will increase their crude oil production in August by a similar amount to the large increases agreed upon in May, July, and June. Four OPEC+ members told four sources last week that the group intends to increase output by 411,000 barrels a day when it meets next month on July 6. According to Kpler data, the market has already seen the effects of previous OPEC+ increases. Saudi Arabia, which is the largest oil exporter in the world, increased its shipments by 450,000 bpd in June from May. This was the highest level in over a year. According to American Petroleum Institute figures, the crude oil inventory in the U.S. has increased by 680,000 barrels over the last week. The Energy Information Administration will release official data on Wednesday, 10:30 am ET. ET. Tony Sycamore is an analyst at IG. He said that the non-farm payrolls numbers due Thursday will determine the timing and depth of the interest rate reductions by the Federal Reserve in the second half this year. Lower interest rates would spur economic activity, which in turn would boost oil demand. Investors also watch trade negotiations in advance of the tariff deadline set by U.S. president Donald Trump on July 9. Trump said on Tuesday that he does not plan to extend the deadline. (Reporting from Sudarshan Varadahan in Singapore, Editing by Christian Schmollinger).
'Amazonia' bonds in 2024 seen a tough cost some
A political push to raise the firstever Amazonia Bond has actually increase throughout talk with agree a roadmap, yet the possibility of an offer this year faces technical hurdles and scepticism amongst some of those entrusted with handling the financial obligation, sources informed .
Brazil, Colombia, and Ecuador are amongst a group of countries in talks with advancement banks to launch a specifically supported structure to raise billions of dollars of low-priced financing to protect the world's greatest rainforest.
Proposed by the Inter-American Advancement Bank and World Bank in 2015, is for the first time reporting the progress being made, the bond structures and timings being gone over, but likewise some of the push-back from officials in two of the region's biggest nations.
Covering more than 6 million square kilometers, the Amazon absorbs large amounts of climate-warming greenhouse gases and is home to more than 10% of all known animals and plants, the highest density of types anywhere in the world.
It would be a significant landmark transaction for nature-linked securities, stated Arend Kulenkampff, director of the Sustainability-linked Sovereign Debt Center, a non-profit effort to coordinate green financing, describing the effort's capacity effect.
COST OF STEWARDSHIP Politically, Amazonia bonds line up with the call from the presidents of Brazil, Colombia and others in the Amazon basin for abundant countries to contribute more to jungle's. security.
A member of Brazil's environment delegation told that. increasing multilateral advancement bank (MDB) financing is a. leading need of it G20 presidency this year and ahead of the U.N. climate summits in Azerbaijan in November and its Amazonian city. of Belem in 2025.
Just MDBs can rally climate funding on the scale that is. needed in big establishing nations like Brazil, Mexico and. India, the individual stated. 'Credit assurances' for instance can. greatly lower loaning costs that can normally be in the. double-digits for nations.
How much money MDBs can supply and how fast is an open. concern, as authorities state there is no time to lose in. attending to environment modification.
However while politically Brazil, and Colombia which hosts the. COP16 U.N. biodiversity talks in October, are both eager to have. a landmark deal to reveal for their efforts, some authorities are. sceptical of the requirement to hurry a new financial obligation instrument.
Colombia, like the other 8 Amazon countries, could. introduce an 'Amazon bond,' but it has actually insisted on thinking about the. Amazon not as a source of financial obligation however as a source of income, said. Jose Roberto Acosta, Colombia's director of public credit at the. finance ministry.
Emerging economies are significantly pushing for the world to. help put a value on their stewardship of such shared resources,. for example by generating biodiversity credits that might be. offered to other nations or companies to raise cash.
For this factor, it is not likely that it will be. accomplished before COP16, Acosta stated.
2 sources with direct knowledge of the matter told . that conversations were still in preliminary phases within. Brazil's federal government and that any development, if verified, would. not come this year.
Brazil's Finance Ministry, stated it was up until now unaware of. any conversations and had not yet received a formal proposition for. an Amazonia bond.
The ministry likewise indicated last year's strong demand for. Brazil's very first international green bond that raised $2 billion. and was offered with lower-than-normal 6% rates of interest. It prepares. to issue more in the future it added, although banking sources. suggested an MDB-guaranteed Amazonia bond may just require half. that interest rate.
And there is requirement to keep interest rate as low as. possible. The expense of hitting Brazil's self-set climate targets. - it is intending to more than halve its greenhouse gas emissions. by 2030 and be 'net absolutely no' by 2050 - has actually been estimated at $100. billion a year, or 7% of its financial output.
Other nations and the advancement banks associated with the. strategies did not comment on the status of talks when asked by. .
MARCH TALKS
The March talks went over a variety of concerns that will need. to be concurred before the first bond is launched.
Amongst them was what to consist of on the menu of bond options. open to countries issuing under the framework, with an aim of. introducing both usage of profits bonds - where money is. earmarked for specific projects - and sustainability-linked. bonds (SLBs), connected to more general objectives like minimizing. deforestation rates.
With many nations in the region yet to write SLB. structures into national guidelines, an use of proceeds bond is. a most likely alternative for the first issuance, three sources stated. Companies and regional development banks might also release in future.
International interest is strong, with person. governments including Sweden, Italy and Spain already offering. assistance, 3 sources said. Moving forward, other multilaterals. such as the Development Bank of Latin America and the Caribbean. ( CAF) are most likely to end up being involved, one source included.
Among other problems to solve is defining what must be. considered a genuine use of the brand-new bonds' proceeds,. including whether to enable spending in cities, provided 80% of. those residing in the Amazon are in urbanised environments.
While the very first bonds are likely to be provided by nations. separately, the hope is they could eventually be done jointly. under the IDB's 'Amazonia Forever' framework to make big scale. and reliable cross-border conservation efforts possible.
The goal of the program is to fund sustainable development. and help reduce logging, with the equivalent of about four. soccer pitches being reduced every minute, according to EU. data.
While Brazil, Colombia, Ecuador, Guyana, Peru, Bolivia and. Suriname have currently signed up, providing bonds collectively is no. easy accomplishment offered the differing financial health of each state.
It follows a drive by Brazil's left-wing President Luiz. Inacio Lula da Silva to unite his neighbours in pressing richer. nations to help pay to protect the forest. Because 1970, Latin. America has lost 94% of its monitored populations of mammals,. birds, fish, reptiles and amphibians, a WWF and ZSL analysis. showed.
(source: Reuters)