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Brazil's "soy Moratorium" site is offline following antitrust ruling
The Brazilian antitrust authority suspended the "soy moratorium" on Tuesday, a private agreement enforced globally by grain traders to protect Amazon rainforests from deforestation caused by soy. This is in response to the set of measures implemented by the agency Monday, which included launching a full-blown investigation into 30 traders and groups for alleged practices anti-competitive. The soy ban, which has been hailed for years as one of most successful initiatives in protecting the Amazon rainforests, prohibits soybean traders from purchasing from farmers that cleared land after July 2008. The CADE General Superintendent regulator ruled, however, that the soy moratorium could be a violation of Brazilian competition laws. After a preliminary investigation, Superintendent Alexandre Barreto de Souza issued an order to the firms that they suspend the agreement or pay fines. The request was made by the Agriculture Committee of the lower house of Congress of Brazil in August 2024. Farmers, who backed a majority of the lawmakers in the panel, called the suspension of the moratorium a historic win. According to Mauricio Bufon, the president of Aprosoja Brasil, soy farmers are not expected clear large areas of forest, as this crop is advancing over pastureland. He added that the suspension of the initiative changes market dynamics. He said that to circumvent the moratorium farmers would use an intermediary and accept less money for soy. Buffon said that the farmers will no longer require a middleman. The majority of Brazil's soybeans is sold to China. However, European nations like Spain, Italy, and Britain also buy it. TRADERS IN BIND In recent months, pressure to end the moratorium has increased on many fronts. Three cases are being heard by the Supreme Court about whether states that grow soy can refuse to give tax incentives to those who sign this agreement. Next Friday, the Supreme Court will decide whether or not to uphold an injunction which confirmed that one state, Mato Grosso can refuse to give such incentives beginning in 2026. People familiar with the thoughts of Anec and Abiove, two trade groups, said they would appeal against the suspension of the agreement at CADE's Tribunal, composed of six commissioners including the president. CADE stated that they have five days in which to appeal, and the tribunal 48 hours to assign an assigned reporting commissioner. CADE could take several years to complete the investigation and render a final opinion regarding the legality of the moratorium. If the soy exporters' trade groups are found guilty of violating the competition law, they could face fines up to 2 billion Reis ($365.60 millions). The fines for traders can be as high as 20% of their gross revenue from the fiscal year prior to the investigation.
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Trump blasts the appeals court that halted Resolution Copper land transfers
The U.S. president Donald Trump blasted on Tuesday the decision of an appeals court to temporarily block federal officials' ability to complete a land transfer required for Rio Tinto to and BHP's Resolution Copper Project in Arizona. The 9th U.S. Circuit Court of Appeals, based in San Francisco, has ruled that the transfer - which was scheduled for Tuesday - should be halted while the court weighs a request from San Carlos Apache tribe to block this project due to religious and cultural reasons. The 9th U.S. Circuit Court of Appeals, based in San Francisco, ruled Monday that the transfer – which was scheduled for Tuesday – should be halted until the court considers a request by the San Carlos Apache Tribe to block the project due to religious and cultural reasons. The court's decision was the first in five years that a court had ruled in the Apaches or their allies favor. Resolution is slated to be one of the largest suppliers of metals used in nearly every electronic product. In a post to his Truth Social platform Trump called the court "radical left" and claimed that those opposing the mine were "anti-American and represent other copper-competitive Countries." Trump wrote in his post that it was "sad" that radical left activists could do this and impact the lives of many people. We can't allow this to continue in the U.S.A. Trump didn't outline any specific actions he would take to influence the court but stated that "our country, quite simply needs Copper -- and NOW!" The court stated that it "takes no position on the merits of the Apache's argument" and will expedite the review. The court has asked that filings be submitted before Oct. 14 but it has not scheduled a date for a hearing. Trump appointed 10 of the 29 members of the appeals court. San Carlos Apache representatives were not available for immediate comment. Rio, who owns 55% to BHP's 45%, refused to comment on Trumps post. However, it said that they were "confident" that the court would ultimately confirm the land transfer. BHP did not respond to a request for comment immediately. Trump's announcement comes less than one month after he Copper tariffs were imposed The mining industry expected a much higher levy on copper concentrate, but it was only imposed on wire and pipes. This will allow other nations to import copper without worrying about tariffs. History Construction of the mine would create a crater, which would swallow up a sacred site for Apaches. This has led to strong opposition by all but one of Alaska's 22 Native American Tribes as well as from the National Congress of American Indians. The mine was approved by the Congress in 2014 and the then-President Barack Obama after it had been added at the very last minute to the a Must-pass Military Funding Bill With the condition that a report on environmental issues be published. Underground mines - what are they? Trump has been able to get his first term approved Before successor Joe Biden reversed his - would provide more than a quarter the U.S. demand for copper, and be an important part of Trump’s plan to Boost U.S. Mining Apache Stronghold is a nonprofit group made up of conservationists and some Apache. They asked the U.S. Supreme Court for a block on the transfer. Denied in May The tribe also made a similar request to federal courts. The tribe failed in district court last week and appealed on the weekend. Rio, whose largest shareholder is a Chinese aluminium company, said It plans to keep the entire copper production of Resolution in the U.S. Should the mine be approved. The company owns one of two U.S. smelters for copper. (Reporting and additional reporting by Trevor Hunnicutt, editing by Leslie Adler & Franklin Paul; Reporting by Ernest Scheyder)
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US to conduct more than 30 offshore oil auctions by 2040
The U.S. administration of President Donald Trump announced on Tuesday a comprehensive plan to sell more than 30 oil and gas leasing rights in the Gulf of Mexico, Alaska's Cook Inlet and the Gulf of Mexico over the next fifteen years. Why it's important The plan is in line with the energy dominance agenda of Trump's administration to increase domestic fossil fuel production. This schedule is a major departure from the former president Joe Biden's administration, which had planned to auction a small number of drilling right auctions in order to combat climate change. KEY QUOTE Interior Secretary Doug Burgum stated that the One Big Beautiful Bill Act was a historic step towards unleashing America's potential energy. Under President Trump's guidance, we are putting into place a bold and long-term plan that will strengthen American Energy Dominance. It will also create good-paying job opportunities, as well as ensure we continue to responsibly exploit our offshore resources. By the Numbers The schedule includes thirty lease sales in the Gulf of Mexico until 2040, which Trump renamed as the Gulf of America. The first Gulf sale will be held on 10 December this year. From next year onwards, two sales will take place in the Gulf each year until 2039. One sale in 2040. Cook Inlet in Alaska is planning six lease sales through 2032. The first sale will take place in 2026. (Reporting and editing by David Gregorio; Nichola Groom, Nichola)
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Brazil's "soy Moratorium" site is offline following antitrust ruling
The Brazilian antitrust authority suspended the "soy moratorium" on Tuesday, a private agreement enforced globally by grain traders to protect Amazon rainforests from deforestation caused by soy. The soy ban has been touted as one of most effective initiatives to protect Amazon rainforests because it prohibits soybean traders from purchasing from farmers that cleared land in the Amazon after July 2008. The General Superintendent of the Brazilian antitrust regulator CADE ruled on Monday that this represents a possible breach of Brazilian competition laws. After completing a preliminary inquiry, Superintendent Alexandre Barreto de Souza issued an order to firms that they suspend the agreement or pay a fine. This was prompted by the request of the Agriculture Committee of the lower house of Congress of Brazil in August 2024. Farmers opposing the moratorium are a majority of the lawmakers in the agriculture committee. Barreto de Souza launched a full investigation on Monday involving 30 grain exporters, two industry groups and a review of whether the moratorium - which has been in effect for 19 years - "constitutes... an anticompetitive agreement involving rival firms". Brazilian soy farmers celebrate the suspension of the moratorium as an historic victory. According to Mauricio Bufon, the president of Aprosoja, farmers are not expected clear large areas of forest in order to grow soy, as this crop is advancing on pastureland. He said: "We don't believe that there will be any drop in the soy trade." Soy traders find themselves in a difficult situation. People who are familiar with the thoughts of Anec and Abiove have told me that they plan to appeal the suspension at CADE's Tribunal, which is made up of six commissioners including the president. CADE could take many years to complete the investigation and render a final ruling on the legality of the moratorium, but companies can settle with CADE during the course the investigation. If their trade group is found guilty of violating the competition law, they could face fines up to 2 billion Reais ($365.60 millions). Fines for traders can be as high as 20% of their gross revenue from the fiscal year prior to the investigation.
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Tariffs raised on imports of wind turbines and cranes
The U.S. Commerce Department announced on Tuesday that it will increase steel and aluminum tariffs for more than 400 products, including mobile cranes and bulldozers as well as other heavy equipment. Railcars, furniture, and hundreds of products are also affected. The Department of Finance announced that 407 new product categories will be added to the list "derivatives" of steel and aluminium products subject to sectoral tariffs. These products are subjected a 50% tariff for any steel or aluminum content. Added to the new tariffs are imported automotive exhaust systems, and electrical steel required for electric vehicles. The department was urged by a group of foreign automakers not to include the parts, claiming that the U.S. did not have the capacity to meet the current demand. Compressors and pumps are also included in the new tariffs. Jeffrey Kessler, Under Secretary of Commerce Industry and Security said: "Today's actions expand the reach of steel and aluminium tariffs and close down avenues of circumvention. This will support the continued revitalization for the American steel and Aluminum industries." Steelmakers, including Cleveland Cliffs, and others petitioned to the administration for the tariffs on steel and aluminum auto components to be expanded. (Reporting and editing by Ryan Patrick Jones, David Shepardson, and Bhargav Asharya)
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Gold drops as investors wait for Fed's Jackson Hole Conference
Gold prices fell on Tuesday, as the U.S. Dollar strengthened. Investors remained tense in anticipation of Federal Reserve Chair Jerome Powell’s speech to be delivered at Jackson Hole this week. By 11:40 am, spot gold had fallen 0.1% per ounce to $3325.74. ET (1535 GMT). Earlier in the session, the contract reached its lowest level since 1 August. U.S. Gold Futures for December Delivery fell by 0.3% to $3369.60. The benchmark 10-year yields fell, but the dollar index pared its losses and remained steady. Jim Wyckoff is a senior analyst with Kitco Metals. He said that "generally, (traders) are positioning on the futures markets ahead of the Jackson Hole Meeting... It's going be pretty quiet until then." Fed chair Jerome Powell is scheduled to give a speech on Friday about the central bank's policies and economic outlook. The Federal Reserve will hold its annual conference in Jackson Hole this week. U.S. president Donald Trump continues to call on the Federal Reserve to cut rates further. Wyckoff stated, "My feeling is that (Powell), might lean just a bit more dovish... which would be good for the gold and silver price." Gold that does not yield, which is traditionally a hedge in times of uncertainty, tends to do well when interest rates are low. According to CME's FedWatch, traders see an 83% probability of a Fed rate reduction of 25 basis points in September. Trump also said that he was hoping Vladimir Putin, the Russian president, would end the war in Ukraine. The minutes of the Federal Reserve meeting held in July, which are set to be published on Wednesday, will shed light on U.S. economy outlook. UBS raised its gold target price for the end of March 2026 from $3,600 to $3,600 due to persistent macroeconomic risks in the United States, a drop in dollar usage, and strong demand. Other than that, silver spot fell by 1.4%, to $37.49 an ounce. Platinum was unchanged at $1,322.85, and palladium dropped 1%, to $1,111.76. (Reporting from Noel John, Bengaluru. Editing by Sharon Singleton & Sahal Muhammed.
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Aluminium nears two-week low in Ukraine talks
On Tuesday, aluminium prices fell to their lowest level in almost two weeks as a result of the possibility that the Ukraine conflict would end and allow Russia, a major producer to increase supply. The benchmark three-month aluminum on the London Metal Exchange dropped 1% at 1610 GMT to $2,562 per metric ton, its lowest level since August 6. The price of aluminium has fallen for three sessions, including on Friday when U.S. president Donald Trump met with his Russian counterpart Vladimir Putin to try to broker a peace in Ukraine. Both Trump and Zelenskiy raised the possibility of a three-way meeting with Putin when they met on Monday. The so-called peace bonus could include the fact that aluminum is driving the index down this week. Ole Hansen is the head of commodity strategy for Saxo Bank, Copenhagen. He said that negative price action was due to increased supply. Many companies have refused to use Russian materials. The LME has prohibited metal produced in Russia from its warehouses after mid-April of 2024 to comply with U.S., British and European sanctions imposed on Moscow for the 2022 invasion. "Aluminium is on an upward trend since April and today it appears that we are just below this." Hansen continued, "I would also imagine that we are seeing some technical sales below $2,580." LME Aluminium has recovered 12% from its eight-month low in April of $2,300. The metals complex has been weighed down by a slightly stronger dollar index, as investors await policy signals from the annual Federal Reserve Symposium in Jackson Hole this week. The dollar is stronger, and therefore the price of commodities in U.S. dollars will be higher for foreign buyers. Other metals include LME copper, which fell by 0.4%, to $9,693.50 per ton. Nickel also declined, falling 0.8%, to $15,030, and zinc, which dropped 0.3%, to $2,768.50. Lead rose 0.1%, to $1,973.50, and tin increased 0.4%, to $33,825. Click here to see the latest metals news (Reporting and editing by Eric Onstad, Janane Venkatraman, Joe Bavier).
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Cooperative says that a cold snap will reduce the next coffee crop in a key Brazilian region.
The cold snap that hit Brazil's Cerrado Mineiro region earlier this month has reduced the size of the next crop by about 412,000 60 kg bags or 5.5%. This was revealed in a report released on Tuesday by the coffee cooperative Expocacer. Expocacer reported in a recent report that temperatures in the area plummeted to just 2 degrees Celsius (35,6 degrees Fahrenheit). Glaucio Castro, President of the Cerrado Coffee Growers Federation told reporters at the time the cold snap could have damaged the buds on the coffee trees, reducing the flowering potential for the 2026 harvest. According to the latest report by StoneX, Cerrado Mineiro’s 2025 crop is expected to produce more than 6,000,000 60-kg bags. According to the report that was sent out, of the 13,000 hectares that were evaluated by Expocacer in the study, 1,173 had frost damage. This affected 67 growers. Expocacer estimates that the average loss in productivity potential for areas directly affected by frost is 55%. The cooperative stated that future reports will provide more precise measurements on the impact per hectare. Reporting by Roberto Samora, Writing by Oliver Griffin, Editing by Gabriel Araujo & Paul Simao
Oil prices drop as Ukraine talks increase prospects of sanctions being eased
Oil prices dropped on Tuesday, as traders weighed the possibility that talks to end the conflict in Ukraine between Russia, Ukraine, and the U.S. could lead to a lifting of sanctions against Russian crude oil, increasing supply.
Brent crude futures fell 85 cents or 1.3% to $65.75 per barrel at 1315 GMT. U.S. West Texas Intermediate Crude Futures for September Delivery, which expires on Wednesday, are down 95 cents or 1.5% at $62.47 a barrel.
The October WTI contract, which is the more active, was down by 63 cents or 1% at $62.07 per barrel.
After a meeting at the White House on Monday, with Ukrainian President Volodymyr Zelenskiy and European Allies, U.S. president Donald Trump announced via social media that he spoke with Russian President Vladimir Putin.
Trump said that arrangements were being made to meet with Zelenskiy and Putin, which could result in a trilateral meeting involving the three leaders.
After yesterday's meeting, between Trump, Ukrainian president Zelenskiy and several European head of state and governments, it appears that there is movement in the negotiation, which fuels renewed hope for an imminent end to the conflict. Commerzbank analysts wrote in a note that oil prices have fallen again today as a result.
Suvro Sarkar said that Trump's softer stance on secondary sanction targeting importers Russian oil has reduced the risk for global supply disruptions. This has eased geopolitical tensions a little.
Two analysts and a trader reported on Tuesday that Chinese refineries had purchased 15 cargoes for delivery in October and November as Indian demand has declined for Moscow's oil exports.
Zelenskiy called his discussions with Trump "very good", and noted that they discussed potential U.S. guarantees of security for Ukraine. Trump confirmed that the U.S. will provide such guarantees. However, the extent of the support is still unclear.
Trump wants to end Europe's bloodiest war in 80-years quickly, but Kyiv's allies are worried that he may try to force an accord on Russia's terms.
Bart Melek of TD Securities' commodity strategy department said that if tensions were to ease and secondary tariffs or other sanctions removed, oil would drift toward the $58 barrel average for Q4-25/Q1-26. Reporting by Robert Harvey from London, Anjana Anil from Bengaluru and Emily Chow from Singapore. (Editing by Christina Fincher, Mark Potter).
(source: Reuters)