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VEGOILS - Palm up on a soft ringgit, but weaker rival oils and crudes cap gains
Malaysian palm futures closed higher on Wednesday after the previous session?declined?. The ringgit was softer, but weaker crude oil and competing edible oils limited gains. The benchmark palm oil contract for September delivery at the 'Bursa Malaysia derivatives Exchange' rose by?11 Ringgit or 0.24% to 4,557 Ringgit ($1,113.64). A Kuala Lumpur based trader stated that the market had been supported earlier by a recovery in rival soyoil and a slightly lower ringgit during the morning Asian session. The palm ringgit's currency has weakened by 0.24% against dollars, making it cheaper for buyers of foreign currencies. Prices of soyoil on the Chicago Board of Trade fell by 0.66%. Dalian's palm oil contract lost 0.59%, while the most active soyoil contract fell by 0.32%. As palm oil competes to gain a share in the global vegetable oil market, it tracks the price movement of its rival edible oils. Crude Oil fell by more than 1%, as the U.S. and Iran continued to negotiate a final deal that would end their war. The market was waiting for the U.S. data on stock drawdowns. Palm oil is less appealing as a biodiesel feedstock due to the weaker crude oil futures. A trade ministry regulation revealed that Indonesia set its crude palm oil reference price at $1,090.90 per tonne for July. As part of the country's push to achieve energy independence, B50 fuel, which is a mixture of 50% palm-based and 50% conventional diesel will be available on Wednesday. Analysts say that the low oil prices and more expensive palm oil are threatening its viability. ($1 = 4.0920 ringgit) 1 Please enter the?codes between brackets to view freight rates for?Peninsula Malaysia/Sumatra from China, India, Pakistan, and Rotterdam. Double-clicking on the bracketed?codes will show terminal users the cash and futures?prices for edible oil. To move to the next page, press F12. To go back, hit F11. 1
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Aluminium and copper both hit a four-month low due to fund liquidation
Aluminum prices fell to their lowest level in four months Wednesday, and copper also lost ground as funds liquidated bullish 'positions due to concerns over rising?U.S. Interest rates and uncertainty about negotiations to end the Iran conflict. The benchmark three-month aluminum on the London Metal Exchange fell 0.9%, to $3,058 per metric ton, by 0930 GMT. It had previously reached its lowest level since February 19, at $3,045.50. Tuesday, metals used for transport, packaging, and construction saw their biggest quarterly and month-to-month declines in years. Ole Hansen is the head of commodity strategy for Saxo Bank, a Copenhagen-based bank. The continued strength of the dollar and the yields staying 'firm' adds weight to these markets. After hitting a six month low, the most traded aluminium contract at the Shanghai Futures Exchange closed daytime trading 1% lower, closing the daytime trade at?22.370 yuan (3,292.47) per ton. The dollar reached a record high against the Japanese yen as the yields on U.S. Treasury bonds rose sharply, while the dollar index remained steady. The dollar is stronger, making commodities priced in U.S. dollars more expensive to buyers using other currencies. The news that Iran refused to meet with U.S. top envoys, who had flown to the region following an outbreak of hostilities clouded the prospects for lasting peace between the two countries. LME 'copper' fell 1.6% to $13,165.50 per ton, after U.S. officials missed a June 30 deadline to announce whether or not tariffs would be applied to refined copper. The losses in 'base metals' were however limited after a survey revealed that the manufacturing sector of China, which is a major metal consumer, expanded for a seventh consecutive month in June, finishing its strongest quarter since late 2020. Other LME metals include zinc, which fell 2%, to $3,480 per ton. Lead also dropped 0.2%, to $1,871, Nickel was down 0.4%, to $16,355, and Tin, which was down 2%, to $50,550. ($1 = 6.7943 Chinese Yuan Renminbi)
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Norsk Hydro Slovak Aluminium Smelter to Partially Restart Production
Norsk Hydro announced 'on Wednesday that its Slovalco aluminum joint venture had reached an agreement with Slovak Government?to partly restart production after?a four-year shut down,?and 'the deal included a new long term power supply contract. Hydro stated that the pact will pave the way for a restart of smelting capacities of 75,000 tons per annum. Production is expected to resume by the fourth quarter of 2026. The remaining 100,000 tonnes of capacity would depend on the conditions after 2030 and any additional power contracts. The resumption of primary aluminium production in Ziar nad Hronom, central Slovakia, would be a huge boost for the European Market, which 'has been left short 'of metal due to the closures of the Mozal smelter, in Mozambique and the EU’s new carbon taxes, as well as the war-driven supply restrictions in the Gulf. Slovalco, owned by Norway's Hydro and Central Europe-focused Penta Investments Group (55.3%) was forced to cease primary aluminium production by September 2022 due to high electricity prices. Hydro stated that the deal outlines the "long-term frame conditions" for aluminium production. This includes a power purchasing pact with the state-owned hydropower utility Vodohospodarska Vystavba, and a compensation plan?for indirect costs of carbon under the EU Emissions Trading System (ETS). Slovalco said in a statement released after a signing event in Bratislava, on Wednesday, that it would invest 100 million euro ($14 million) in order to restart operations. This investment will support over 200 jobs. $1 = 0.8877 euros (Reporting and editing by Elaine Hardcastle, Clarence Fernandez, and Jan Lopatka)
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Gold drops as Fed rate hikes and higher Treasury yields weigh
On Wednesday, gold fell for the third session in a row as?U.S. Treasury yields, as well as growing bets on the Federal Reserve raising interest rates, weighed down on gold. As of 0849 GMT spot gold was down by 0.8% to $3,974.75 an ounce, after reaching its lowest level since November last year at $3942.99 in the previous session. U.S. Gold Futures for August Delivery lost 1.3%, to $3.987.70/oz. On Tuesday, the yellow metal recorded its first quarterly loss in 2024. The benchmark 10-year yield rose as high as 9 basis points on Tuesday, before easing off its peak. On Wednesday, yields were up again by 4 basis points at 4.465%. This was higher than the increase in euro zone bonds yields. Bullion is less affordable to overseas buyers due to a stronger dollar. The market is pricing in more rate increases for this year because of comments made by Fed's Hammack. Beth Hammack, the president of the Federal Reserve Bank of Cleveland, said Tuesday that she might advocate for higher interest rates if inflation continues to rise. CME FedWatch shows that traders expect a rate increase of 67% by September. Staunovo said that the expectation of more hikes is not helping investment demand. ETF holdings saw renewed outflows over recent days. The Fed may change its policy direction based on the June ADP employment report, which is due at 1215 GMT. The markets will also be watching the annual conference of the European Central 'Bank in Sintra on Wednesday. Fed Chair Kevin Warsh, and ECB -President Christine Lagarde both have speeches scheduled. Geopolitically, there are concerns about the prospects of U.S. diplomacy with Iran after Teheran announced it would not be meeting senior U.S. officials. Envoys travelled to the region following the recent outbreak of violence. Spot silver dropped 1.4% to $57.75 an ounce. Palladium fell 1.4% to $1,187.01, down from its lowest level since November. Palladium fell 1.4% to $1187.01. (Reporting and editing by Harikrishnan Nair in Bengaluru, Noel John from Bengaluru)
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Zelenskiy: Ukraine strikes Russian oil refinery, missile component factory
Ukraine has hit a Russian refinery in Ufa for the second consecutive time, Volodymyr Zelenskiy, the president of Ukraine, said on Wednesday. Kyiv is intensifying its strikes in Russia. "Our plan to impose Ukrainian long-range sanction is being implemented every day," Zelenskiy said, referring the Ukrainian attacks deep within Russian territory. "This is a completely just response to everything Russia does against us." Zelenskiy reported that a strike was also carried out on a Russian military-industrial complex he described as "strategic", located in the Penza area, which he claimed made components for missile weapons used by Moscow to attack Ukraine. He said that the site was located about 600 kilometers from the frontline. The Ukrainian General Staff identified the plant as belonging to Roscosmos, a Russian state-owned space corporation. The company said that it produces sensors for cruise missiles and ballistic rockets, components for aircraft electronics, and equipment to support reconnaissance satellites. General Staff reported that two?bridges were also struck in Russian-occupied areas of Ukraine's Donetsk, Luhansk and Donetsk regions as well as the logistics crossing in Donetsk. Analysts say that Ukraine's increased?attacks on Russian military supply lines is part of an ongoing campaign to target Moscow’s logistics behind the frontline. This effort has helped slow down its war machine, after more than four years of conflict. Ukraine's Defence Ministry said that Ukraine's troops hit 11 oil refineries as well as fuel logistic facilities, military factories and other targets in the month of June. Ukraine's SBU security service?also said it had struck hangars housing Russian jet fighters on an airfield in Crimea that?Russia annexed in 2014. Zelenskiy announced last week that he approved a campaign of 40 days to "influence" Russia into ending its five-year war with Ukraine. (Reporting and editing by Andrew Heavens, Sharon Singleton, and Anna Pruchnicka)
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Fuel prices in Nepal are reduced as global prices fall
Nepal has lowered fuel prices up to 17 percent, according to an official statement released on Wednesday. The Himalayan nation reacted to the fall in global prices after progress was made?towards a peaceful resolution of the war iin 'Iran. The sole distributor and importer of fuels in Nepal, the state-owned Nepal Oil Corporation, has reduced retail prices for petrol, diesel and cooking gas. It said that jet fuel prices have dropped by 14.8% for domestic flights from Kathmandu and by 14.47% for international flights from Pokhara. Prices have fallen sharply since recent highs, as fears of supply disruptions in the Middle East waned amid hopes that U.S. and Iranian peace talks would help maintain a fragile ceasefire. Brent and U.S. West Texas Intermediate are both close to the levels they reached on February 27, just before the U.S. and Israel war against Iran began. Brent closed that day at $72.48 a bar and WTI at $67.02. NOC stated that the'movement was a result of lower fuel supply prices received by Indian Oil Corp on Tuesday. Indian Oil Corp is?the lone?supplier to Nepal. It said that the improvement in fuel prices on the global market was to blame. New rates are effective as of Wednesday. Nepal raised petrol and diesel prices?in April,?and began rationing cooking gases in?March because of supply disruptions caused by the Iran War. Nepal, wedged between India and China is completely dependent on fuel imports. (Reporting and editing by Aftab Ahmad, Raju Gopalakrishnan and Gopal Sharma)
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Two killed after wildfire ravages house in Northern Greece
The fire brigade reported that two people died after a wildfire destroyed a house in a 'forested settlement' in northern Greece. Local media reported that the fire started in bushland Tuesday afternoon, and was fanned quickly by strong winds. It engulfed a house located near the village of Liti, about 25 kilometers (16 miles) north of Thessaloniki. Fire brigade reported that they found a dead man near the fire as they extinguished it and saw another body inside the home. The same area was also the location of a woman who suffered?burns. Authorities told residents to evacuate their'settlement' and move to a nearby playing area. Scientists consider Greece and other Mediterranean countries to be wildfire hotspots due to the fast-warming climate. Fires are more destructive in the summer months when it is hot and dry. (Reporting and editing by Elefterios papadimas, Angeliki Koutantou)
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Aluminium prices fall to four-month lows as Gulf risk premium declines
Aluminum prices fell to their lowest level in four months on Wednesday as investors unwound risk premiums associated with the Gulf, despite new uncertainty surrounding U.S. diplomacy towards Iran. As of 0715 GMT the benchmark 'aluminium' for three months on the London Metal Exchange was down 0.73% to $3,063 per tonne, after hitting a four-month-low at $3055.50 earlier during the session. On Tuesday, it posted its largest quarterly and monthly drops in years. The Shanghai Futures Exchange's most traded aluminium contract tracked the LME. It closed daytime trade at 22,370 Yuan ($3,292.47) per tonne, down 0.95% from its six-month-low of 22,245 Yuan. The London benchmark fell by almost 16% in the month of June as the risk premiums for metals?light?were reduced amid the Iran War, despite the fact that shipments through the Strait of Hormuz - a region which accounts for 9% of the global aluminium production - remained low. Iran announced on 'Tuesday' that it will not meet with senior U.S. representatives who have travelled to the area, thereby reducing the chances of a lasting peace agreement. Iranian officials said that both sides need to sort out the details of the ceasefire agreement signed two weeks earlier before they can move on to more difficult issues. The most traded SHFE contract fell 0.56%, while the LME three-month copper contract lost 1.10%. U.S. Job Openings reached a 2-year high in May, indicating that labour demand was resilient despite the softer hiring. Investors focused on inflation and the possibility of U.S. rates staying high for longer. This supported the dollar. Copper losses were capped by signs of a?continued growth in China's industrial sector. The RatingDog China General Manufacturing PMI slipped to 51.7 from 51.8 in may, but remained above the 50-mark that separates growth from contraction. The average PMI for the second quarter was the highest since the fourth of 2020. This was due to sustained growth in new orders and improved labor?market conditions. Nickel slid by 0.38%, tin fell by 2.30% and zinc dropped 1.30%. The SHFE saw zinc gain 0.64% while lead fell 1.09%. Nickel also declined 0.63%, and tin was a smidgen higher at 0.07%. ($1 = 6.7943 Chinese Yuan Renminbi)
Stocks hold on to gains before megacap earnings, jobs data, United States election
European shares held slight gains on Tuesday as financiers girded for 3 days of megacap tech earnings reports on Wall Street, while the dollar hovered near a threemonth high before key labour market information.
The yen found its footing following Monday's dip to a. three-month low as the coalition government's drubbing in. weekend elections clouded the outlook for Japanese fiscal and. monetary policies. The Nikkei index recuperated from a cautious. begin to build on the previous session's gains.
The U.S. election has entered its last stretch, with. opinion surveys still too close to call a winner, regardless of some. betting websites and monetary markets leaning toward a win for. Republican Donald Trump over Democrat Kamala Harris.
Markets remain in a favorable mood, and seem to be immune to. event threat, said Kathleen Brooks, research director at XTB.
The pan-European STOXX 600 index was up 0.1%, after. earlier increasing to a more than one-week high.
Germany's DAX, Britain's FTSE 100 and. France's CAC 40 were up in between 0.1% and 0.3%.
In Asia, Japan's Nikkei ended the day up 0.8%,. constructing on its 1.8% rally in the previous session. It started. the day down 0.2%.
Hong Kong's Hang Seng was 0.5% higher, paring earlier. gains of as much as 1.6%. Mainland Chinese blue chips. slipped 1%, reversing an early rise of 0.68% as investors considered a. leading management meeting next week for more details of Beijing's. stimulus steps.
U.S. S&P 500 futures were little bit altered after the. money index acquired 0.3% on Monday.
The bulk of the Splendid Seven group of megacap. innovation stocks that have driven Wall Street to all-time highs. this year reports financial results today. Alphabet. kicks things off in the future Tuesday before revenues from. Meta Platforms and Microsoft on Wednesday,. followed by Apple and Amazon on Thursday.
DOLLAR NEAR 3-MONTH PEAK
The dollar rose 0.1% against a basket of six significant peers,. that includes the yen and euro. The dollar index stood. at 104.40, after reaching 104.57 on Monday, matching the high. from Wednesday of last week, a level previously not seen given that. July 30.
Recent robust U.S. economic information, including proof of a. resistant task market, have actually triggered a downsizing of bets on. further Federal Reserve alleviating this year, improving the dollar.
One of the Federal Reserve's preferred work gauges -. the Shocks task openings report - is due on Tuesday, ahead of. highly prepared for monthly non-farm payrolls data on Friday.
The U.S. currency has also been buoyed by rising market. expectations for an election win for Trump, whose tariff, tax. and immigration policies are seen as inflationary, thus negative. for bonds and positive for the dollar.
Ten-year U.S. Treasury yields rose to 4.314% on. Tuesday, the greatest because July 11. Bond yields move inversely. with costs.
Markets have actually started to care more about the election, stated. Nordea chief analyst Jan von Gerich.
Plainly Trump has gotten in the polls and a lot more in the. betting odds and we're seeing that in a more powerful dollar and. greater rates.
The dollar rose 0.1% to 153.455 yen, just listed below. Monday's 153.885, its greatest given that July 31.
In Japan, a period of wrangling to secure a union is. likely after Prime Minister Shigeru Ishiba's Liberal Democratic. Celebration and its junior partner Komeito lost their bulk in. parliament, in a scathing outcome that potentially means bigger. fiscal costs and complicates the Bank of Japan's push to. normalise interest rates.
The head of the opposition Democratic Party for individuals. said on Tuesday that the reserve bank must avoid making huge. modifications in its ultra-loose financial policy due to the fact that genuine wage. growth remains at a dead stop.
The BOJ next chooses policy on Thursday, with no modification. anticipated.
The euro fell 0.1% to $1.0798, and sterling. stood at $1.2981 before Britain's new Labour federal government. reveals its first budget on Wednesday.
Gold increased 0.2% to $2,747 an ounce, pressing towards. the record high of $2,758.37 from recently.
Brent unrefined futures rose to $72.37 a barrel, while. U.S. West Texas Intermediate crude was at $68.83 a. barrel. Both agreements toppled 6% on Monday, striking their. least expensive because Oct. 1, after Israeli strikes on Iran at the. weekend avoided oil infrastructure.
(source: Reuters)