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Palm extends its losses and falls by nearly 2% due to a price rally and a sluggish demand for exports
Malaysian palm futures dropped nearly 2% on Wednesday. This was the second session of losses after a recent rally harmed its competitiveness with rival'soyoil', and sluggish imports fuelled fears over increasing inventories. At the close, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange was down by 93 ringgit or 1.88% at 4,853 Ringgit ($1,206.31). The contract dropped by 1.43% during the previous session. Palm's recent price rise has eroded some demand, as the soybean oil prices in Indian ports are cheaper than palm oil. Meanwhile, refining margins continue to be razor thin. He said that if demand did not pick up, palm inventories were likely to rise. This would be more true as the months of peak production in September and October approached. Palm oil gained 6.54% in five sessions straight through August 21 and closed over 5,000 ringgits for the first since December 2024. Cargo surveyors estimate that Malaysian palm oil exports for August 1-25 were down between 11.4% to 20% from the previous month. Dalian's soyoil contract, which is the most active contract in Dalian, rose by 0.19% while palm oil contract fell by 0.62%. Chicago Board of Trade soyoil prices were down by 1.68%. As they compete to gain a piece of the global vegetable oil market, palm oil monitors price changes. Oil prices dropped more than $2 per barrel, reaching a new two-week low. Talks between Iran and Oman revived hope that the Strait of Hormuz would reopen to ease shipping restrictions in the Middle East. Weaker crude futures make palm less appealing as a biodiesel source. The ringgit - the palm's currency of trade - strengthened by 0.54% against dollars, making it more expensive for buyers with foreign currencies.
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The gold rally takes a break ahead of US inflation figures
Gold prices eased Wednesday as they were on track to end a three-session winning streak. The focus now shifts to the U.S. inflation figures due later today to get hints on Federal Reserve's interest rate outlook. Spot gold dropped 0.9% at $4,616.62 an ounce as of 0927 GMT after the recent announcement by the U.S. Treasury Department to buy back bonds. Prices had risen to their highest level since May 14, Tuesday, following this announcement. U.S. Gold Futures fell 0.5% to $4672.10. Nikos Tzabouras is a senior market analyst for Jefferies owned Tradu.com. He said, "Gold prices have been subdued as the rally appears technically stretched and markets are adopting a cautious approach ahead of important events that could shape its trajectory." The U.S. The July Personal Consumption Expenditures Inflation Report is due Friday at 1230 - GMT, along with Fed Chairman Kevin Warsh’s remarks from the Jackson Hole Symposium. The soft producer and consumer inflation numbers published in this month have reduced the likelihood of an interest rate increase in September. According to the CME FedWatch tool, traders are pricing in a 64% probability that the Fed will keep rates the same next month. In a high interest rate environment, gold's non-yielding nature can make it less appealing. If?Warsh is tight-lipped, we can expect a renewed easing of the dollar, and a further interest in gold, on the basis?uncertainty. However, if he's resolutely firm about his intentions, gold could?come into pressure," said Rhona o'Connell. Iran announced that it has resumed discussions with its neighbor,?Oman, to manage the Strait of Hormuz due to increased?economic pressure by U.S. president Donald Trump. Data released on Tuesday showed that China's net imports of gold via Hong Kong rose 11% in July compared to a month earlier. This was largely due to an increase in investment demand. Silver spot fell 0.3% per ounce to $68.46, platinum dropped by 0.3% to 1,852.06, while palladium rose 0.7% to $1335.09. (Reporting and editing by Rashmi aich and Louise Heavens in Bengaluru)
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Over a decade, the Himalayas have seen a number of deadly disasters
Authorities are 'fearing' more casualties after a massive flash flood swept through the Himalayan border areas of Nepal, and adjacent Tibet on Wednesday. The flood washed away villages and damaged roads, bridges, and power projects. Some analysts blame climate change and development for the worst disasters that have occurred in the Himalayas during the past 12 years. AUGUST 2025 In the Indian state Uttarakhand, sudden floods and landslides have killed four people, while dozens are missing. SEPTEMBER 20, 2024 As a result of persistent rains and flooding, at least 66 people have died in Nepal. NOVEMBER 20,23 A collapse trapped?41 workers in a road-tunnel being constructed in Uttarakhand. The men were low-wage employees from some of India's poorest state. They were rescued after 17 days. Authorities gave no explanation for the collapse. OCTOBER 20, 2023 In India's northeastern Sikkim state, torrential rains triggered an outburst of a glacial ice lake that caused devastating floods and killed 179 people. JANUARY 20,23 In the Indian town Joshimath, 200 people were evacuated after cracks appeared in hundreds of buildings. These structures were later demolished because they were unsafe. Residents, geologists, and government officials have blamed rapid building for the deterioration of the buildings. OCTOBER 2020 In Uttarakhand, heavy rains and unseasonal flooding washed out bridges and flooded roads. At least 46 people were killed. FEBRUARY 20, 21 A flash flood in Uttarakhand killed more than 200 people. It swept away two Hydroelectric Projects and sent debris, water, and rocks rushing down the Dhauliganga River Valley. SEPTEMBER 2014 About 200 Indians and 266 Pakistanis were killed in the Kashmir region by unusually heavy rainfall. The Jhelum River, which flows from India into Pakistan, was flooded. (Compiled by Sakshi dayal; edited by YPrajesh, Clarence Fernandez and Clarence Fernandez).
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EGA restarts a quarter of Al Taweelah after Iran attack
Emirates Global Aluminium (EGA), announcing on Wednesday that it has brought back to life a quarter of the Al Taweelah Smelter in Abu Dhabi, as part of the company's efforts to recover from damages caused by an Iranian strike in March. After the attack on the Khalifa economic zone, the company reported that 315 reduction cells of the 1,262 total reduction cells at the site were back online. EGA is repairing all three production lines and gradually re-starting the Al Taweelah Smelter, which produces about 1.5 million tons per year. EGA stated that the lines were reactivated between May and august. EGA reported that around 1,000 people were involved in the restoration of production at Al Taweelah. Abdulnasser Bin Kalban, Chief Executive Abdulnasser Bin Kalban, reiterated that the company was on track to restore production at full capacity in the first quarter 2027. The company said that its refinery continues to operate at around 50% capacity while the output of its new recycling facility is increasing as planned, with a full output by the 'final quarter of this year. EGA stated that "the pace of the further ramp-up in?alumina will be determined by supply chain considerations and the optimization of EGA's strategy for alumina sourcing." (Reporting and editing by Kate Mayberry, Elaine Hardcastle, and Pablo Sinha from Bengaluru)
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Copper prices fall as LME stocks are not supported by economic worries
The price of copper dipped a little on Wednesday, after a recent surge that saw it reach a six-month peak. Economic concerns were a factor in the decline. Benchmark three-month Copper on the London Metal Exchange fell 0.09% to $14,336.5 per metric tonne by 0716 GMT. The price of a metric ton reached $14,437 earlier in the day, its highest level since January 29. The Shanghai Futures Exchange's most traded copper contract rose?0.55%, to 108.750 yuan (16,182.55) per ton. Metal, also known as Dr Copper, is used?as an indicator of economic health. The markets were waiting for the release of?U.S. The Personal Consumption Expenditures price index (PCE) for July is due at 1230 GMT. The Federal Reserve Chairman Kevin Warsh is scheduled to deliver a keynote address at Jackson Hole,?Jackson Hole, on Friday. The lower oil prices as tensions between the U.S. and Iran shifted to economic pressure did not do much to support metals that are growth-dependent, but they did reduce interest rates. High interest rates can affect the demand for industrial metals because they weigh down on economic activity. According to CME's Fedwatch, there is now a 36% probability that the Fed will increase rates at its meeting in September, down from 41% the day before. Non-traditional copper investors, including hedge funds and other speculative traders, trade on inventory data that shows falling warehouse stock. David Wilson, BNP Paribas' head of metals strategies, said: "There are many non-traditional sources that trade copper and a great deal of money moves quickly based on data releases." Aluminium?lost 0.45%, while zinc ticked higher by 0.09%, lead?dipped by 0.24%, and nickel fell 0.42%. Tin shed 0.38%. Aluminium fell 0.17% on the SHFE. Zinc gained 0.71%. Lead added 0.22%. Nickel dropped 0.32%. Tin dropped 0.29%. $1 = 6.7220 Chinese Yuan Renminbi (Reporting and editing by Sonia Cheema).
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Nornickel, a Russian company, recommends a 6-month dividend at 1.85 roubles per share
Norilsk Nickel, the largest palladium producer in the world, announced on Wednesday that its board recommended a dividend for the first half 2026 of 1.85 Rubles ($0.0219) per share. In a press release, Chief Financial officer Sergey Malyshev stated that the company has sufficient cash flow and a comfortable debt level to make the payment, adding that this would help maintain its attractiveness. Nornickel shares were still down 1.7% at 10:41 local time (741 GMT) on the Moscow Exchange. The miner last paid an interim dividend to its shareholders in 2023. It offered 9.15 roubles per share. It reported in July a sharp rise in revenue and profit, due to the rising metal prices. The company said that it would be considering paying an interim dividend. It hasn't paid out full-year dividends from 2022-2025 due to a heightened level of macroeconomic uncertainty and political tensions. On September 30, shareholders will vote on the board's proposal. Alfa Investments analysts estimate the proposed dividend yield to be around 1.5% at current market prices. Nornickel CEO?Vladimir Potanin is a Russian billionaire who owns 33,51% of the company, down from his previous 37% stake. Rusal is its second largest shareholder, with a 26.39 percent stake.
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The gold rally takes a break ahead of US inflation figures
Gold prices eased on Wednesday as they were on course to snap a three-session winning streak. The focus now shifts to the U.S. inflation figures due later today, which will provide signals about Federal Reserve's interest rate outlook. Spot gold dropped 0.6% by 0745 GMT to $4,630.72 an ounce, after the price of gold climbed to its highest level since May 14, Tuesday, following the U.S. Treasury Department's announcement about bond buybacks. U.S. Gold Futures fell 0.2% to $4687.20. Nikos Tzabouras is a senior market analyst for Jefferies owned Tradu.com. He said, "Gold prices have been subdued as the rally appears technically stretched. Markets are adopting a cautious approach ahead of important events that could'shape their trajectory." The U.S. The U.S. The soft producer and consumer inflation numbers published in this month have reduced the likelihood of an interest rate increase in September. According to the CME FedWatch tool, traders are pricing in a 64% probability that the Fed will keep rates the same next month. In a high interest-rate environment, gold's non-yielding nature can make it less appealing. If Warsh is tight-lipped, we can expect a renewed easing of the dollar, and a further interest in gold on the basis that it's uncertain. However, if Warsh is resolutely steadfast in his?intentions, then the price of gold may be under pressure. Iran announced that it has re-started discussions with Oman about managing the Strait of Hormuz, as it faces increased economic pressure by U.S. president Donald Trump. China's net imports of gold?via Hong Kong? in July? rose 11% compared to a month ago, according to?data released on Tuesday. This was largely due to an increase in investment demand. (Reporting by Sukanya Mitra in Bengaluru; Editing by Rashmi Aich) (Reporting by Sukanya Mitra in Bengaluru; Editing by Rashmi Aich)
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Lynas looks to expand its global footprint and new rare earths deals
Australia's Lynas Rare Earths announced on Wednesday that it planned to expand its global supply chain. Discussions were held to secure new?mine supplies from project developers all over the world, and to set up a magnetic processing facility in the United States. Comments were made after the largest producer of rare earths in the world outside China, reported a sharp increase in annual profits, aided by record-high average selling prices for Rare-Earth Oxide and strong demand. However, it missed market expectations. Shares of the company fell up to 8%. Interim CEO Pol Le Roux'said Lynas was in discussions with project developers for ionic deposits around the globe to secure new supplies and that he expects new 'deals' to be announced soon. He didn't say if that meant buying material or acquiring existing ionic-clay businesses. Daniel Morgan, a Barrenjoey analyst, said: "I believe they left the door open - and they are considering everything." Le Roux said that Lynas is in the early stages of talks with different parties about developing a magnet manufacturing facility?in the U.S. He said, "But we're on track with that development. And more is coming," on an earnings call. The U.S. and its allies are racing against time to create supply chains that will reduce their dependency on China. China accounts for 90% of the global production of rare-earth products, such as magnets, used in aerospace, automotive, and defence industries. The one-year export control suspension announced by China for several medium and heavy rare Earth products expires on November 30. Soaring Profits Missed Predictions Lynas reported a net loss after tax of A$222.4million ($159.37million) for the year ended June 30. This is up from A$8million a year earlier. Visible Alpha's consensus estimate was A$242.5million. The company also cited rising costs and operational challenges at its Mt Weld Mine in Australia. It said that it had resolved the quality problems at its 'Kalgoorlie' plant. They have "fixed" a lot of problems. Morgan said, "It's good to know that they have improved their operational stability." Lynas stated that the earnings surge was a result of firm prices and agreements on floor?price with Japanese and U.S. clients, which helped to reduce volatility. Its average selling ?price rose 59% to A$80.7 per kilogram, helped by improved pricing of neodymium-praseodymium, a key rare-earth magnet material, and a higher share of heavy rare-earth sales and ?sales with pricing not linked to the ?market index. It said that despite export restrictions, customers continued to prioritize sustainable rare-earth supply chain outside of?China, and strong demand boosted sales volumes. After Amanda Lacaze's retirement, the company is looking for a new chief executive officer.
Zinc continues to rise, and hovers at a four-year high due to regional tightness
On Wednesday, zinc?prices reached their highest level in over four years on a combination of speculative and supply concerns.
The benchmark three-month price of zinc at the?London Metal Exchange rose 0.4% to $3,907 per metric tonne by 0945 GMT. This was its highest since June 2022.
Zinc, which is mainly used for galvanising steel, has suffered from regional disparity. Stocks are eroding at warehouses registered with LME, while they pile up in China.
Local shortages of zinc have pushed the cash LME zinc premium over the three-month Futures.
Some are unsure how long the zinc price increase will last.
In a note, broker Sucden Financial stated that "we believe zinc's upward movement is vulnerable to a position unwind when momentum stops."
The three-month LME Copper, which is also being affected by declining inventories and concerns about supply, remained unchanged at $14.355 per ton. It had previously reached its highest level in six months, at $14.437.
The Shanghai Futures Exchange's most traded copper contract rose 0.6%, to?108.750 yuan (16,182.55) per ton.
As markets waited for the U.S. Inflation data, due at 1230 GMT, Dr Copper, a metal that is often used as a barometer to gauge economic health was kept in check.
As non-traditional participants such as hedge funds and speculative traders trade on data showing "falling warehouse stock", the uncertainty is offset by a 'price support' from waning LME inventory.
David Wilson, BNP Paribas' head of metals strategy, said: "There are many non-traditional sources for trading copper and a large amount of money moves quickly on data releases."
Other metals also fell, with aluminium down 0.1% to $3,236 per ton. Nickel dropped 0.3% to $15,990, and tin fell 0.2%, to $55,750. ($1 = 6.7220 Chinese yuan Renminbi)
(source: Reuters)