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Palm oil prices rise on bargain-buying, and crude oil is rebounding
Malaysian palm futures ended higher on Wednesday. This was due to bargain-buying following a two session decline and a recovery in crude oil prices. The benchmark contract for?October?delivery at the Bursa Malaysia Derivatives Exchange gained 21 ringgit or 0.45% to 4,663 Ringgit ($1,140.93). It had lost 1.67% over the two previous sessions. Anilkumar bagani, commodity research director at Sunvin Group, explained that crude palm oil futures rose on the back of bargain-buying due to a rebound in prices for energy and some good palm?oil coverage from India. He said that the optimistic increase in palm oil exports from Malaysia this month has cushioned the prices. Exports of Malaysian Palm Oil Products for the period July 1-25 increased between 8.1% to 15.9%, according to cargo surveyors. Bagani said that the lack of Indonesian B50 biodiesel allocations and higher production estimates for July 1-20 capped gains. Oil prices rose more than 3% after tensions escalated in the Middle East following U.S., Saudi and Iranian strikes on U.S. forces and intercepted Iranian missile attacks. Palm oil is more appealing as a biodiesel feedstock because crude oil futures are stronger. Dalian's palm oil contract increased by 0.64%, while the most active soyoil contract dropped by 0.23%. Prices of soyoil on the Chicago Board of Trade rose by 0.04%. As it competes to gain a share in the global vegetable oil market, palm oil closely tracks the price fluctuations of rival edible oils. The ringgit (palm's currency) has risen 0.05% in value against the dollar. This makes the commodity slightly more expensive for foreign buyers. The European Union soybean imports, which began in July, were 0.56 million metric tons by July 26. This was down 39% compared to a year ago. Palm oil imports also fell 39%, from 0.13 million tonnes, according to data provided by the European Commission.
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Cenovus increases its annual production forecast on the strength of oil sands performance
Cenovus Energy increased?its production outlook for 2026 on Wednesday.?This was after reporting an increase in quarterly profit, as higher?oil price sands output and record oil prices helped boost earnings. The Canadian oil producer increased its full-year upstream production forecast by 25,000 barrels of oil equivalent per day (boepd) to between ?970,000 and 1.01 million boepd, citing stronger-than-expected performance across ?its oil sands assets and optimized turnaround activity. Cenovus and other integrated oil companies are benefiting from the global fuel market that has been impacted by the Iran War. The war has slowed down supply, pushed up prices, and increased earnings for both production and refinement. The company reported that its total upstream output was 970.400 barrels equivalent per day (boepd), up from 765.900 boepd a?year earlier. This is due to the MEG?Energy?acquisitions and growth projects in Christina Lake, Foster Creek, and Sunrise. Calgary-based MEG Energy's net profit grew to C$2.87 Billion ($2.04 Billion) or C$1.53 a share in the second quarter. This was up from C$851 Million ($603.67?million), 45 Canadian cents a share, one year ago.
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Ukrainian miner reduces operations following Russian attacks on ships
The company stated that the Ukrainian Iron Ore Concentrate Producer, Pivdennyi Mining and Processing Plant, has begun to suspend operations due to the disruption caused by Russian attack on civilian ships heading for Ukraine's Black Sea Ports. The company said it hopes to resume production by August. After intensifying Russian strikes, other companies have also reduced their operations. Last week, shipowners stopped vessel arrivals to Ukraine's Black Sea ports in southern Odesa. The ports are responsible for a large part of Ukraine's grain and ore exports, which are the largest source of foreign currency and one of its biggest exports. The company issued a press release stating that "Pivdennyi Mining and Processing Plant" has started the process of temporarily reducing the?work and suspending production. According to Metinvest's Annual Report, the plant was owned by Metinvest in part and produced?nearly 11000 metric tons iron ore last year. BUILDUP IRON ORE The company stated that it could not store the production of several shiploads intended for export. It was forced to temporarily stop operations. Ferrexpo, a Ukrainian iron ore producer that manufactures iron pellets, announced on Tuesday that it does not expect to have the ability to?load ships via the Black Sea route in the near future. Geneva-based Allseeds, a producer of vegetable?oil, halted operations last week in the Odesa area. Ukraine's largest grain exporter Kernel Holding also suspended operations earlier this month at Chornomorsk port on the Black Sea. Moscow claims it targets port infrastructure and vessels that support Ukrainian military. Ukraine has increased its attacks on Russian vessels, most of which are carrying fuel, in the Sea of Azov as well as?the Black Sea to isolate Russia's occupied Crimea and undermine Moscow’s revenue sources. Five industry sources said on Tuesday that three Russian Black Sea grain terminals had restricted truck intake. (Reporting and editing by Barbara Lewis; Anna Pruchnicka)
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France and Spain battle to contain wildfires when temperatures soar once again
The temperatures were expected to rise again in France and Spain on Wednesday, in the fourth heatwave of summer. This will increase the risk of wildfires, which have already forced people to evacuate in large numbers, burned through forests, and killed wildlife. Weather agency AEMET in Spain said temperatures 'were expected to hit 40 degrees Celsius on Wednesday, 104 degrees Fahrenheit, at least six regions were on orange alert. This is the second highest level. Meteo France predicts that temperatures in France's southwest, which has been devastated by fires, will rise from 33 C to 42 C. Dry winds in the morning from the southwest and in the afternoon from the west are likely to fan the flames. French firefighters managed to keep a major fire west of Bordeaux under control overnight, but officials warned that the blaze was not yet out. Firefighter Commander Matthieu Jomain said to reporters that "as we speak the situation is stable, but the fire still is not under control." "We are, of course, vigilant today, given the forecasted weather conditions with an increase in temperatures and wind speed in the afternoon." Fire kills deer in Spanish forest The heatwaves in Europe have been unprecedented this year. Climate change caused by humans is causing the heat to increase and the droughts to worsen, allowing wildfires spread more quickly. Heatwaves that are more frequent and intense cause thousands of deaths in excess and disrupt?everyday living, from slowing down road and rail traffic to affecting river shipping. Drone footage from El Tiemblo in Spain's Avila Province, near Madrid, shows charred carcasses of deer in a forest that has been reduced to ashes. Cintia, a Madrid resident who goes by Cintia, was horrified at the scene she saw in El Tiemblo. She has visited this place many times. "We love the wildlife, everything around us. We used to feed the animals, because they are from here. "They belong to this country," she said. "And look at where it is now." VILLAGERS TRY PROTECTING THEIR HOMES Forests have been affected in a wide range of ways. Wildfires in the Landes region west of Bordeaux have destroyed 42,000 hectares (104, 000 acres) of pine trees. About 220,000 people were evacuated, including tourists and locals, because the fire threatened Cap Ferret Peninsula on the Atlantic Coast, which is only accessible via one road. On specially chartered ferries, hundreds of people left. The flames were as close as 9 miles (15 km) away from the Bordeaux metropolitan area. Several companies in the suburbs closed their doors to prevent the fires spreading. Volunteers in Lanton, a village also in the southwest of France, ravaged by wildfires have tried to protect their community with buckets of water. It's really hard because we have few resources. "We try to help people in any way we can with the little resources we have," said 29-year-old local pastry chef Jonathan Segalas Talous on Tuesday. "We want to stay here. We've been living here for many years. We will do everything in our power to help. "We help." Meteo France stated that the danger level in southwest France is likely to drop from Thursday due to thunderstorms, cooler temperatures, and higher humidity. FIRE IN CASTELLON RAGES FOR FIFTH DATE Authorities in Spain said that the situation in central provinces Avila and Madrid had improved, but the fire in eastern Castellon was still out of control, despite having burned over 10,000 hectares due to weather conditions. Castellon residents who were evacuated are still unable return to their homes. As the fire entered its fifth day, regional authorities estimated that the perimeter of fire was 75.5 km. Madrid's emergency services reported on?X, that the wildfire had not spread over night. Firefighting crews "kept trying to consolidate the perimeter of the fire and extinguish any remaining hot spots" to prevent it from re-igniting. Fernando Grande-Marlaska, the Interior Minister, said that evacuees were returning to their homes in 15 towns of Madrid and Avila. (Additional reporting from Leonardo Benassatto, Yves Herman, Emma Pinedo and David Latona in Madrid, Inti, Kate Abnett, and Sudip, Kar-Gupta, in Brussels; Janis Laizans, in Bordeaux; Writing and editing by Alison Williams; Ingrid Melander)
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Sources say that Russia will extend the ban on diesel exports but it could be lifted quickly if conditions improve.
Two sources who are familiar with the discussions on Wednesday said that Russia is planning to extend its diesel export ban by one month. However, the restriction could be lifted mid-August, if domestic supply improves. The ban was introduced by Russia from July 8 until July 31, as part of an overall package of measures designed to support the domestic market for fuel after repeated Ukrainian drone strikes on oil refineries caused fuel shortages and price increases. Moscow has already placed restrictions on the export of jet fuel and gasoline. Alexander Novak, the Deputy Prime Minister, said last week that the gasoline export restrictions would be extended to the end of the year. The diesel export ban, however, will be lifted as the market recovers. The ministry of energy declined to comment before a decision by the government on this ban. The ban has caused a global uproar in the energy market, causing shortages and a rise in prices, even for countries that do not buy diesel from Moscow. The ban on Russian diesel imports was a result of domestic?shortages?caused by Ukrainian drone attacks. According to?Kpler?, the average daily loading of diesel and gasoil from Russia was 234,000 barrels between July 1 and 10. This is down from 400,000 barrels in June. In 2025 this will average to about 817,000 barrels. The Russian export ban reduces global diesel supply, forcing regular buyers like Brazil and Turkey to compete against European countries and other importers of U.S. cargoes. Reporting by. Mark Potter (Editing by Mark Potter).
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Sources say that ADNOC, the UAE's oil company, sold crude to Asian refiners at a premium in its seventh tender.
Trade sources reported on Wednesday that Abu Dhabi National Oil Co had sold 12 million barrels of spot crude at a premium to Asian refiners, trading firms and other companies in its most recent tender. The renewed U.S. - Iran hostilities have disrupted the?supplies, and this has sparked an 'impulsive buying spree. Since the fighting between Iran and the United States intensified in the first half of this month, oil?flows have dropped sharply through the Strait of Hormuz. ADNOC uses a shuttle fleet to move crude oil out of the Gulf of Oman and onto other tankers, despite exports slowing this month. Asian refiners are increasing their purchases of alternative grades and ADNOC cargoes as shipments have been delayed. Indian Oil Corp bought 2 million barrels Upper Zakum crude for loading in August at a flat rate or $1 more than the Dubai prices of August on a delivered-basis. Sources said that Chinese majors, including?Sinopec’s trading arm Unipec and PetroChina, each bought 2,000,000 barrels of Upper Zakum at a premium of $3 to $4 per barrel over September Dubai quotations. Sources said that the cargoes would be delivered between September and October. Idemitsu Kosan, a Japanese refiner, bought 2,000,000 barrels of Das crude on a free-onboard basis at a price premium of about $1 per barrel over September Dubai prices. Companies rarely comment on the?trades. This was the seventh tender issued by the United Arab Emirates since June began. ADNOC has offered Murban and Upper Zakum crudes for loading between August to October. Uncertainty remained as to whether Murban cargoes had been awarded. A trader claimed that ADNOC wanted a premium around $10 per barrel for the grade. ADNOC has now sold more than 86,000,000 barrels of crude oil through seven tenders. According to Kpler data, before the war the UAE exported 103 and?95 millions barrels of crude oil for January and February, respectively. ADNOC, according to a trader, has asked South Korean buyers for better bids before Wednesday afternoon in order to finalize the sales.
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Copper prices drop ahead of Fed rate announcement
Copper prices slid on Wednesday as demand concerns and a?strong dollar weighed down ahead of the end of the Federal Reserve's meeting in the United States. Benchmark three-month Copper on the London Metal Exchange fell?0.13%?to $13,667 per metric ton at 0700 GMT. The Shanghai Futures Exchange's most traded copper contract closed the daytime trade down 0.15%, at 104 890 yuan (15,494.96) per ton. Markets have increased the odds that rates will increase in September. The Fed is expected hold rates at their current level on Wednesday. According to CME FedWatch, traders see a 70% chance of no change in rates this week and 76% of an increase in September. Daniel Hynes, ANZ's strategist, said that investors in copper remained worried about tighter monetary policies. High rates could reduce economic activity, and the demand for copper. They would also support the dollar while making commodities more expensive for holders of other currencies. The fall in AI stocks has also affected expectations for rising copper demand. Hynes stated that the sentiment has been affected by the recent selloff of AI stocks. This week, shares in Asian chipmakers have suffered a blow, as valuations are feared ahead of important earnings by big tech companies. The copper price was boosted due to the AI infrastructure construction, where it is a key?commodity. Aluminium posted the largest gain on SHFE. The most active contract ended the day at 23,455 Yuan per ton, up 1.03%. Rupankar RM is the head of AL Circle's market research and data analytics. He said that the overnight?rise? in SHFE aluminum appeared to be more driven by sentiment and a?futures position than a?stronger physical need. Rupankar added that "the futures rally is yet to be validated by stronger demand in the physical market." He also suggested that broader macro-economic developments could have influenced sentiment. The LME counterpart was up 0.46% to $3,162 per ton. Other LME metals include zinc, which grew by 0.15%. Lead gained 0.29%. Nickel grew by 1.18%. Tin climbed by 1.09%. On the SHFE, meanwhile, lead climbed 0.86% while nickel grew 0.08%. Tin also gained 0.72%.
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Eni buys back more shares as profits in the second quarter reach a 3-year high
Eni, the Italian energy group, increased its share buyback program by EUR600 million on Wednesday to EUR3.4 billion ($3.9 billion), after reporting better-than-expected second quarter results. The company's adjusted profit net more than doubled from EUR2,09 billion to EUR2.3 billion in the period April-June, surpassing the analyst consensus of EUR2,09 billion that was compiled by?group and reaching its highest level in 3 years. Eni has said that it may pay an additional dividend in the fourth-quarter if Brent oil prices remain substantially higher than its forecasts. The results were boosted by a growth in the upstream business of the group, the progress made at the biofuel division Enilive, and the spike in energy prices caused by the conflict between Iran and the United States. The company's full-year target was raised to 5%, up from the previous 3% to 4%. Eni's E&P division's adjusted proforma earnings (EBIT), before interest and taxes, came in at EUR4.77billion. This was higher than the analysts' estimated EUR3.01billion. Claudio Descalzi, CEO of the company, said that they were scaling up their E&P operations for the next phase of growth and value creation. He mentioned the launch of a joint venture between Indonesia and Malaysia called Searah as well as several project advances and expansion into new geographical areas.
US and China to start new talks on tariff truce, easing the path for Trump-Xi Meeting
The top U.S. economic officials and Chinese representatives will resume their talks on Monday in Stockholm to address long-standing economic disputes that are at the heart of a trade conflict between the two largest economies. They hope to extend the truce for three months while preventing tariff increases. China faces an August 12 deadline for a lasting tariff agreement with the Trump administration. Beijing and Washington had reached preliminary agreements in May and early June to end weeks' worth of escalating tariffs, and to stop the cutoff of rare-earth minerals.
If there is no agreement, the global supply chain could be thrown into turmoil by U.S. tariffs returning to triple-digit rates that would amount to an embargo on bilateral trade. The Stockholm talks follow Trump's largest trade deal to date with the European Union, which was announced on Sunday. It included a 15% tariff for most EU exports into the U.S. including autos. The EU will also invest $600 billion in U.S. energy and buy $750 billion of American energy over the next few years. The U.S. and China talks are not expected to produce a similar breakthrough, but trade analysts believe that a 90-day extension is likely of the tariff and export control ceasefire struck in mid May.
A further extension would help prevent further escalation, and allow for planning a possible meeting between Trump and Chinese president Xi Jinping at the end of October or beginning of November. A U.S. Treasury spokeswoman declined to comment on South China Morning Post's report, which cited unnamed sources who said that the two sides will refrain from introducing any new tariffs for 90 more days.
Trump's administration will soon impose new tariffs on China, including those on semiconductors. Pharmacies, ship to shore cranes and more.
"We are very close to making a deal with China." "We're very close to a deal with China. We'll see what happens," Trump told reporters Sunday, before European Commission President Ursula von der Leyen signed the tariff agreement. Financial Times reported Monday that the U.S. had paused curbs of tech exports to China in order to avoid disrupting talks with Beijing, and to support Trump's attempts to secure a meet-up with Xi. The newspaper reported that the Commerce Department's industry and security bureau, which is responsible for export controls, was told not to take any tough measures against China. This information came from current and former officials. The report could not be verified immediately. Outside of business hours, neither the White House nor the Department responded to requests for comments.
DEEPER ISSUES The previous U.S.-China talks held in Geneva and London, in May and in June, focused on reducing the U.S. and Chinese tariffs from triple-digit rates and restoring the flow for rare earth minerals that China had stopped and Nvidia H20 AI chips as well as other goods that the United States had stopped.
The talks so far have not covered broader economic topics. The U.S. has complained that China's export-driven, state-led model floods the world's markets with cheap products, while Beijing complains that U.S. export controls on technology goods are meant to stunt Chinese economic growth.
"Geneva and London really were just trying to get their relationship back on track, so that at some point they could actually negotiate about the questions which are the source of the initial disagreement between the two countries," said Scott Kennedy. He is an expert in China economics at the Center for Strategic and International Studies, Washington.
Kennedy stated that "I would be surprised if some of these things were harvested early, but an extension of ceasefire for 90 more days seems the most likely result." U.S. Treasury secretary Scott Bessent already announced a deadline extension. He also said that he wanted China to rebalance their economy from exports towards more domestic consumption, a goal of U.S. policymakers for decades. Analysts claim that the U.S. and China negotiations will take more time than other Asian nations because they are more complex. China's hold on the world market for rare earth magnets and minerals, which are used in everything from car windshield wiper motors to military hardware, has proven to be a powerful leverage point against U.S. industry.
TRUMP-XI MEETING?
There is speculation in the background about a meeting between Trump & Xi that could take place at the end of October. Trump has stated that he would decide on a historic trip to China soon, and any new tariffs or export controls could derail the planning.
Sun Chenghao is a fellow with the Center for International Security and Strategy at Tsinghua's Center for International Security and Strategy, Beijing. He said the Trump-Xi Summit would give the U.S. an opportunity to lower its 20% tariffs against Chinese products related to fentanyl. He said that in exchange for the Chinese commitment to purchase more U.S. farm goods and other goods by 2020, they could fulfill their 2020 pledge.
Sun stated that the future summit of heads of state is very helpful to negotiations, as everyone wants to achieve an agreement or pave a way for the negotiations in advance.
Analysts said that China would likely ask for a further easing of U.S. export controls on high-tech products and a reduction in the multi-layered U.S. duties totaling 55 percent. Beijing argues that these purchases will help reduce the U.S.-China trade deficit, which is expected to reach $295.5 billion by 2024. (Reporting and editing by Diane Craft, Stephen Coates, and Shivani Tanna; Additional reporting in Bengaluru by Shivani.
(source: Reuters)