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EU will delay the anti-deforestation legislation by another year, says commissioner
Jessica Roswall, the Environment Commissioner, announced on Tuesday that the European Union would delay its anti-deforestation legislation for a second year. This will also postpone a ban on palm oil imports, which are linked to deforestation. After complaints from Brazil, Indonesia, and the administration of then-U.S. president Joe Biden and other industries and trading partners in Europe and North America, Brussels delayed the law for an additional year. Roswall told reporters that postponing the implementation of the law was necessary to address concerns about the large volumes of information needed to enter into the information-technology system to enforce the law and was not linked to U.S. concerns about the policy. She said that if the IT system is not addressed, the EU's businesses and supply chain could be disrupted. We are concerned about the IT system because of the volume of data we input into it. We will therefore, in conjunction with co-legislators seek a one-year postponement. This will also give us the time to examine all of the risks," said Ms. Shen. "There is a great deal of information that comes from the industry and business in a very short time." We see this as a potential risk, and we need the extra time to figure out how to solve it," Roswall said. Roswall stated that she would discuss the next steps with both the European Parliament as well as the EU member states. Both must approve of the delay. (Reporting and writing by Kate Abnett, Sudip Kar Gupta, Makini Brice; Editing by William Maclean).
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Wildfires in Canada: An unexpected benefit
Colin Penner, a farmer who farms 3,700 acres about an hour north of the U.S. Border, crunched a handful of canola pods, and blew away the chaff in a stiff prairie wind. In his hand, a small pile of black seeds was left. The harsh sun and high temperatures last summer scorched the yellow flowers of canola and destroyed their pollen. This led to lower yields in Western Canada. Smoke from nearby wildfires covered the skies in July and shielded Penner's young crops from the sun's rays. This resulted in more seeds and pods per plant. He said, "Look at these pods." He will wait to see the harvest, but "smoke is likely to be a good thing." Canola farmers are finding unexpected benefits from the summer skies, as long as it is in July when the crop flowers. Smoke protects delicate canola flower petals and pollen from the intense heat and sun, reducing the impact of the drought that lasted for most of the summer. Scientists believe that prolonged periods of heavy smoking have negative effects on food quality and crop yields. We spoke with dozens of canola farmers and 10 crop specialists who all agreed that the midsummer smoky sky had mostly positive effects for the crop. However, the experts warned that further research was needed. Bruce Burnett, an analyst for the Western Producer Markets Desk, said that the cooling effect of smoke countered the high temperatures during the day and at night, which can harm the crop. Canada is the largest canola producer in the world, with 21 million acres of land planted along Canada's vast forests. The seeds of canola are crushed and used to produce cooking oil, biodiesel, and animal feed. Canola is a cool-climate crop that grows mainly in the northern plains of North America and Europe, as well as Australia. It does not tolerate heat. Heat can cause its pollen to melt, which prevents fertilization and seed formation. The harsh sunlight can cause flower petals to burn. Curtis Rempel is vice president of the Canola Council of Canada's crop production and innovations. He said that smoke can reduce temperature and reduce sunlight. SCIENTISTS REVISE IDEAS ABOUT SMOKES In 2022, the Intergovernmental Panel on Climate Change (IPCC), a climate science panel of the United Nations, predicted that a warmer world and shorter winters will lead to more intense wildfire seasons. Canadian officials stated in August that the intensity and length of wildfires are increasing as winters get shorter and spring, summer, and fall become warmer. Four crop experts said that smoke was probably the worst for North America's largest crops like corn and soya beans, as it reduces heat and sunlight, which plants require to grow. Smoke from wildfires in California has severely damaged wine grape production. The damage was severe both in 2017 and 2020. Researchers in Ohio found mixed results. Researchers found that while the smoke reduced temperatures and light, corn, soybeans and wheat yields reached their highest level in 10 years. Raju Soolanayakanahally is a senior researcher with Agriculture and Agri-Food Canada. He said that the Canadian government will launch research on wildfire smoke's impact on canola and wheat. Soolanayakanahally stated that despite farmers' claims of benefits for this year's crop, smoke could also slow down and weaken the development of crops. The haze may degrade chlorophyll, which is vital for photosynthesis, and decrease the efficiency of enzymes critical to plant development. A review of the existing research into the effects of smoke in U.S. corn found that it had a largely negative impact. Mark Jeschke of Corteva Agriscience Pioneer Seeds, the author of the study and Agronomy manager, said that further research is needed to determine how airborne and ground-level smoke affects corn during its pollination and maturation. The timing of an event that causes stress can be very important. Smoke-tainted wine was discovered in 2020 when over 8,000 fires spread across 4.3million acres of California. Most vineyards were spared direct damage. Vintners discovered that the grapes had produced a slurry with a foul smell and taste, rendering it unsuitable for making wine. The term "smoke-taint", which was used to describe the taint, became a part of wine lexicon. According to the California Association of Winegrape Growers, up to 325,000 tonnes of wine grapes valued at more than $650 million were destroyed that year. Researchers and the industry have been testing treatments that remove smoky components from fermented wine slurry. They also tested a spray to prevent grapes on the vine from absorbing smoke. Natalie Collins, president of the California Association of Winegrape Growers said: "We have so much work to do."
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Copper prices rise on concerns about supply, but inventories are weighing
The price of copper rose on Tuesday, as disruptions in supply and lower interest rates offset concerns about high inventories and the slowdown in global economic growth. By 0920 GMT, the benchmark three-month price of copper at the London Metal Exchange had risen by 0.2% to $9,990 per metric tonne. "We must deal with disruptions in mine supply but we also have healthy increases in inventory levels, particularly in the U.S.," Ole Hansen said, head of commodity strategies at Saxo Bank, Copenhagen. The U.S. rate reductions last week have added to the positive mood, but it is important to remember that they are being done from a place of weakness and not strength. After an incident early in September, production remains suspended at Freeport Indonesia’s Grasberg Mine, one of the largest copper mines in the world. The U.S. Comex exchange's inventories soared in the first half of this year, anticipating U.S. Tariffs. They have since continued to rise, and now total 318,285 metric tons, up by 241%. LME copper is up 13% this year but has fallen from the 15-month high of $10,192.50 reached last week. The question is, will the upward trend that we have seen since May continue? Hansen said that we need to keep the price above $9,850 to avoid a further decline. The most traded copper contract at the Shanghai Futures Exchange ended daytime trading with a 0.3% decline, closing at 79.930 yuan per ton ($11,237.80). According to an anonymous Singapore hedge fund analyst, some traders have closed their long positions since SHFE closed Monday above the psychologically important level of 80,000 Yuan per ton. Lead fell 0.3% at $1.992 and Nickel dipped by 0.1%.
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Serbia will sign a gas import agreement with Russia in October
The head of Serbia's state gas company, RTS, told the public broadcaster on Tuesday that Serbia will sign a deal for a three-year supply of gas with Russia. Dusan Bajatovic, Srbijagas, said that Serbia already has daily gas supplies of 2.5 millions cubic metres from Azerbaijan. It also receives 9.5 million cubic meters daily from Russia. Bajatovic said that Serbia has a single gas storage facility which holds 780 millions cubic metres of gas. If needed, an additional 200,000,000 cubic metres can be obtained from a storage in Hungary. Serbia is one of the few European countries that still buys Russian gas, despite its desire to join the European Union. The government is under pressure from Western nations, but has not yet taken action. The oil monopoly of the country, NIS, which is owned in majority by Russia's Gazprom and Gazprom, is asking for a 7th waiver to delay U.S. sanction that could put its crude oil supply at risk. Aleksandar Vucic will meet with U.S. State Secretary Marco Rubio on Tuesday to discuss, among other issues, tariffs and sanctions. (Reporting and editing by Louise Heavens, Ivana Sekularac)
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Gold reaches record highs on bets that further rate cuts will occur ahead of Powell's speech
The gold price reached a new record high on Monday, driven by expectations that the U.S. Federal Reserve will continue to cut rates. Investors were waiting for Jerome Powell’s speech at the Federal Reserve later in day, which would provide further policy clues. As of 0840 GMT the spot gold price rose by 0.6% to $3,769.48 an ounce. This is a new record high. U.S. Gold Futures for December Delivery rose by 0.7% to $3.801,70. Stephen Miran, the new Fed governor, called for rate cuts aggressively on Monday. He said that the Fed misread how tight its monetary policy was and would put the job markets at risk. This view was countered by remarks made by three of Miran's colleagues, who felt the central bank should remain cautious regarding inflation. "Miran’s dovish position certainly heightens expectations of more rate cuts, as it appears the U.S. Administration is keen to push for this. This is a positive outcome," said Ross Norman, an independent analyst. Investors can expect two 25-basis-point cuts in December and October, according to CME FedWatch. The tool predicts a 90-73% probability of each. Gold that does not yield tends to perform well in an environment of low interest rates. Norman said that "gold is seeing good interest from institutional investors, who may be rotating out of the equities market as it reaches its peak. India also has a good demand for gold." The physical gold premium in India reached a 10-month-high this week, as investors continued to buy bullion to take advantage of record prices in the run up to the festive season. Norman said that the gold rate in the short-term depends on the Indian demand, the Chinese purchasing, and the durability of the increase in ETF holdings. SPDR Gold Trust said that its holdings increased 0.60% from Friday to 1,000.57 tonnes, which is a three-year-high. Silver spot fell by 0.1%, to $44.04 an ounce. This is near the 14-year high. Platinum rose 1.6% to $1,438.97, and palladium climbed 1.9% to $1,000.94. (Reporting by Ishaan Arora in Bengaluru; Editing by Joe Bavier)
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Exxon Mobil opens new Singapore refinery unit to boost sour crude oil imports
Exxon Mobil Corp. has begun production at its Singapore oil refining complex at new facilities to produce base stock from residue fuel. It said on Tuesday that this would increase the plant's intake high-sulfur crude. Exxon released a statement that said the technology uses a combination of processes to transform fuel oil and other crude products at the bottom of barrels into more valuable lubricant base stocks and distillates. Exxon said that the new facilities will increase its Group II base stock production capacity by 20 000 barrels per day. According to Kpler data, Crude imports from Exxon Singapore's refinery reached a record high of 541,000 barrels a day in August. This is the highest level since 2016. The region has been experiencing sulphur-rich crude oil demand. Data showed that the refinery had stopped importing low-sulphur U.S. oil since April and was now only buying high-sulphur crude. According to data, in August, United Arab Emirates ranked first with Murban crude and Upper Zakum oil while Qatar ranked second with al-Shaheen crude. According to data, the refinery imported Arab Light crude in August from Saudi Arabia for first time since November 20, 23. Oman and Iraq are also suppliers. Exxon's Jurong Island crude oil processing capacity is 592,00 barrels per day. Base stocks for industrial and commercial applications are used to make engine oils, gear oil, marine oils and greases.
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Miliband: 'Don't listen to the doomsters.'
Ed Miliband, Britain's Energy Minister, said that talk of an American-led retreat from climate action is overstated. He also stated that the economic arguments for net zero are strong enough to overcome domestic and international scepticism. Miliband spoke from New York Climate Week where speakers called on world leaders to put climate promises into actions, in the backdrop of U.S. president Donald Trump's agenda to boost fossil fuels and roll back pollution regulations, and to defund science and climate action. Not everyone is in favor of climate action He said via video link: "There are many people who say that countries are reversing their climate action and clean-energy policies, but don't listen to the doomsters." When you examine what is really going on, the story is actually very different. He also cited a more positive than expected vibe at Climate Week, and data that showed clean energy technologies had attracted $2 trillion in investments in 2024 -- twice as much as fossil fuels. TRUMP DESCRIBED WIND POWER AS AN EXPENSIVE JOKE Trump, on a recent high-profile visit to Britain described wind energy - which is a major component of Miliband’s plans to decarbonise UK power production by 2030- as "expensive" and encouraged the country to tap into its remaining oil reserves. Miliband responded that countries are entitled to act according to their own interests and that, for many people outside of the U.S.A., focusing on climate goals could lead to more affordable and secure energy. The International Renewable Energy Agency published a report in July that found the majority newly installed renewable energy to be more cost-effective than fossil fuels for electricity production. UK POLITICAL OPPOSITION PREFERS FOSSIL FUEL Miliband is facing opposition from Nigel Farage’s Reform UK party, which currently leads British opinion polls in advance of a 2029 election. They accuse him to be driving up bills through subsidising renewable energy. Farage has pledged to scrap net zero targets, subsidies and support drilling for gas and oil. "I believe they are on a wrong side of the British public, to be honest. People want action on the environmental. Miliband stated that they want it to help tackle the cost-of-living crisis. "We are happy to fight for the future of Britain, and I think it's a battle we can win." (Reporting and editing by Aidan Lewis in London, William James)
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Gulf markets fall as investors consider regional rate cuts and Fed outlook
Gulf stocks fell in the early trading on Tuesday, as investors digested the regional interest rate reductions following U.S. Federal Reserve’s moves. However, lingering uncertainties about its policy outlook kept sentiment cautious. The Fed cut its benchmark rate on Wednesday by a quarter of a percentage point in response to an improving labour market. However, it signaled a cautious approach to future monetary policy ease, leaving investors uncertain about the pace at which further moves will be made. Saudi Arabia, United Arab Emirates and Qatar have all cut their rates by 25 basis point each. Dubai's main stock index fell 0.6% with the majority of sectors slipping into negative territory. Emaar Properties, which was poised to break a three-day streak of winning, fell by more than 1%. Emirates NBD Bank dropped by 0.8%. National Central Cooling (better known as "Tabreed") fell 0.7% before its ex-dividend day. Consumer discretionary performed better, thanks to a 2.3% increase in Taaleem Holdings. ADNOC Logistics' 0.5% decline weighed on Abu Dhabi’s index, which fell 0.1%. Presight AI, a technology stock that has been down more than 1% compared to global peers, was the biggest laggard. Together with investment firm Shorooq the company announced the launch a $100 million fund to accelerate AI innovations. Qatar's stock market index fell by 0.1% on its way to a third consecutive day of losses, with the selling concentrated in energy and financial shares. Qatar National Bank, which is the largest lender in the region, fell 0.5%. Qatar Fuel also dropped 0.4%. Saudi Arabia closed for National Day. (Reporting and editing by Andrew Cawthorne in Bengaluru, Amna Marieyam)
Saudi Arabia's private non-oil sector growth accelerates in August-PMI
A survey on Wednesday showed that Saudi Arabia's private non-oil sector growth was stable during August. Business activity expanded at a faster pace than it did in July as new orders rose.
The Riyad Bank Saudi Arabia Purchasing Managers' Index grew to 56.4 from 56.3 in August, and remained above the 50 mark indicating growth.
Naif Al Ghaith is the chief economist at Riyad Bank. He said that "the slight increase was a sign of another month's steady growth driven by improved demand conditions, modest growth in output, and continued gains in employment."
"Although the growth in activity has slowed from the highs of earlier this year, there is still a positive trend."
The growth of new orders was accelerated by the improved economic conditions. New export orders were also boosted by marketing and collaborations in the Gulf Cooperation Council Region, which marked the fastest increase in four months.
The subindex of new orders increased to 60.1 from 59.7 points in July.
The number of employees continued to increase, although at a slower rate than previous months. Companies expanded their sales teams and launched new projects. In response to increasing orders, inventory growth reached its highest level in four months.
The survey revealed that companies raised their prices for the third month in a row, and faced a steep rise in input costs due to higher purchasing costs as well as global inflationary pressures.
The business confidence index rose from its 12-month low reached in July, and the outlook for output increased. This indicates a positive mood among non-oil private sector companies. (Reporting and Editing by Hugh Lawson).
(source: Reuters)