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Soaring fertilizer prices dim Brazilian farmers' edge over US rivals
B?razil’s cheap and abundant land has helped the country’s farmers create large, low-cost farmland, allowing them wresting export markets from U.S. Farmers?hurt by President Donald Trump’s tariff wars. Brazil has become a major agricultural powerhouse, despite the fact that U.S. farm land hasn't grown in this century. The 'South American country is now being put to the test as the U.S. - Israel war with Iran has sent fertilizer prices soaring. Since the beginning of the war, a third of all fertilizer has been trapped in the Strait of Hormuz. Brazil is heavily dependent on imported fertilizers while the U.S. relies on its own production. Many Brazilian farmers have reduced their fertilizer purchases. Experts in the industry say that Brazil's farmers will still be in trouble even if the war ends tomorrow. They are already saddled with thousands acres of farmland that produce diminishing returns, or even losses. They are beginning to accumulate significant amounts of debt. Many U.S. Farmers have enough land to produce good yields even if they don't apply fertilizer for an entire year. Few Brazilian farmers are able to do that. The different growing seasons also pose a problem. Brazil's spring planting begins in September, so Brazilian farmers are exposed to high fertilizer prices. Farmers were almost finished with their purchases by the time?the conflict began. Brazilian farmers are not eligible for government bailouts and generous support programs. Murilo Martins Rabelo, a farmer from Goias in central Brazil, said that "profitability is just not there." Everyone is currently rethinking expansion. Pereira, 34?farms tomatoes, soybeans and corn on 800 hectares. The rising production costs, he said, make expanding his farm too risky. He has been offered more land to lease. Purdue University agricultural economist Joana Colussi is a Brazilian-born native. She said, "We'll definitely not see the same trends" in agricultural growth. She anticipates that growth will slow, at least temporarily as farmers invest more in fertilizer, fuel and seeds, and less in expansion. HISTORIC GROWTH China's booming agricultural demand prompted Brazil to begin its historic growth in agriculture production. Brazil and the U.S. were forced to compete for vast areas of grassland that had been used for cattle grazing. Brazil is generally the winner. Brazil was among the largest winners as a result of tariffs Trump imposed against China in his first and second terms. In 2000, U.S. sales of soybeans to China were almost double Brazil's. By the end of 2025, Brazil will have sold twice as much soybeans to China. Brazil's expansion was based on the acquisition of cheap, vast land. Many of the soils are degraded today because farmers move to new plots when their old ones fallow instead of investing in soil health. LAND AND SEASONALITY DEGRADED Large-scale industrial agriculture in Brazil is a costly endeavor due to the degrading of land. It requires large quantities of pesticides, gm seed, and other expensive biological inputs. Brazil is not the only country where farmers are struggling to make ends meet. You can survive a lower or even no fertilizer application if you have a better soil. "You can handle a shock such as this better", said Saswato das, global head for corporate affairs at Syngenta, a producer of seeds and pesticides. Even if they miss a season, many U.S. growers can still achieve average yields. This year, thousands of farmers have taken this approach. Potash and DAP are only used for one season on many Brazilian farms. Marshall Lee Davis, a farmer of peanuts and cotton who lives in Georgia, the southern U.S., says that U.S. farmers "just skimp out" on DAP. The price of DAP has roughly doubled since Iran's war began. Davis stated that even U.S. Farmers who could skip one application were concerned about the high prices of fertilizer when they started buying in advance of their spring planting 2027 next March. Since the Iran War began late February, Brazilian farmers have faced high fertilizer prices. They still need to complete their spring planting for?2026 this September and prepare for second-crop plantings in?early?2027. Murphy Campbell, an Expana analyst, said that North American farmers were in a much better position than Brazilian farmers because of seasonality. FERTILIZER, FARMER PROTECTIONS Brazil imports a large amount of DAP and urea-based nitrogen, which is the most commonly used fertilizer in the world. Petrobras, Brazil's state oil company, is restarting some of its less profitable fertilizer plants that were idled by former president Jair Bolsonaro. It hopes to satisfy 35% of the country's nitrogen fertilizer needs within the next few years. The price that farmers can charge for soybeans and corn has not increased much since the beginning of the war, despite the high cost of fertilizer. This is because large harvests have been allowed to accumulate in the last few years. The result has been a squeeze on farmer margins around the world, particularly for those who depend on fertilizer imports. Campbell, from Expana, stated that Brazil's soybean producers had purchased, by late May, about half of their total 2026/27 fertiliser needs. Campbell noted that "in the past, over 60% of fertilizer is purchased by late May". Farmers with increasing debts will suffer from lower yields, lower profits and even outright losses if they reduce their fertilizer application. Bruno Fonseca is an analyst at Rabobank Brazil. He said that the farmers of Brazil are "overleveraged". Expana's Campbell says that the price of fertilizer will remain high for at least six more months, even if a peace agreement is reached in the Middle East. Pereira, a Brazilian farmer, has to make tough decisions because of the grim future. He said, "We planned to replace our harvesters this year. They are very old." "We decided to not go ahead." Reporting by Ed White and May Angel. Oliver Griffin. (Editing by Emily Schmall, David Gregorio and David Gregorio.)
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Copper prices boosted by falling stocks at LME warehouses
Prices of copper rose on Monday as stocks fell in London Metal Exchange approved warehouses. The market is now looking forward to the U.S.'s decision on tariffs for importing?the metal? at the end of June. Benchmark copper prices on the LME were up 0.6% to $13,594 per metric tonne at 0935 GMT. Sources in the industry said that traders and funds continue to take copper from the LME into the U.S., before any import duties are imposed. This would increase shipping costs significantly. The United States has announced that they may impose a 15% tax on copper imports starting in 2027 and a 30% tax beginning in 2028. The?U.S. Copper stocks The number of metals earmarked for delivery or cancelled warrants, which is around 39%, indicates that another 145,800 are due to leave the LME system. Around 39% of cancelled warrants and metal earmarked to be delivered indicate that another 145.800 are 'due to leave' the LME system. The LME inventory has also decreased, reducing the discount for cash copper contracts over the next three months. . The traders also pointed to the strong interest in buying copper from Chinese companies after Friday's drop of 3% to a one-week low as a factor supporting their position. Copper's upside is capped by the 21-day moving average, currently $13,730. Support on the downside comes in at the 50-day average, $13,260. The Middle East, which houses 9% of global production capacity and is affected by the U.S. vs. Iran war as well as the?closure? of the Strait of Hormuz, will continue to be a source of limited supplies. Aluminium prices are expected to rise due to higher energy costs, which is a major component of the aluminium production process. In general, industrial metals were under pressure due to concerns about growth caused by?high oil prices and conflict in the Middle East. The?base metals industry is also affected by a higher U.S. dollar, which makes dollar priced?metals costlier for holders of other currencies. Aluminium fell 0.1% to $3.589 per ton. Zinc was down by 0.2% at $3.524, while lead dropped 0.4% to $1.996. Tin declined 1.4% to $52,195, and nickel was down by 0.3% to $8,530. (Reporting by Pratima Deai; Editing and proofreading by Jan Harvey).
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Clashes in Pakistan-administered Kashmir kill 11 ahead of protest
Clashes in Pakistan-administered Kashmir ahead of a protest called for Tuesday killed ?11 people and injured more than 70 as ?police and paramilitary forces sought to scatter a group of protesters from a ?banned alliance of civil society ?groups. The police said that the protesters from 'the Joint Awami Action Committee', which aims to protect economic and political freedoms, had gathered in front of the hospital morgue, where another member of the group was taken following his death by firing. Sardar Waheed Khan said that four police officers and one passerby were killed after miscreants fired at them. He added, "As a result of law enforcement's response, six protesters died." Liaqat Malik, the police chief in Pakistan's Himalayan region which is a flashpoint between India and Pakistan, said that 23 security officials were injured in the incident on Sunday. He also added that 50 protesters had been injured. Thirty offenders have since been arrested. Shaukat Mir, a JAAC member, said in a video on X that the state had begun a massacre against our people in Rawalakot. He pledged that the group will remain united in order to achieve the June 9 lockdown. Khan responded by saying, "The JAAC leaders are misleading the masses when they call it a massacre. The state's actions were meant to restore order. He said that when security forces attempted to disperse?protesters the group's militants used automatic rifles as well as petrol bombs to target them. The JAAC announced the strike in protest of the reservation 'of 12 seats for refugee candidates at the July 27 regional legislative?body elections, out?of?45 that were up for grabs. The alliance wants to abolish the reserved seats of the Azad-Jammu-and Kashmir Legislative assembly, which are contested by candidates from Pakistan, not Kashmir. The regional government declared the JAAC a prohibited group on Friday under an anti-terrorist law and advised 'domestic and international tourists to leave before June 9'. After clashes with the security forces, the JAAC's supporters turned the deadly protests against the rising cost of electricity and flour into mass demonstrations. Reporting by Tariq Mqbool, Writing by Mubasher Bukhari; Editing Clarence Fernandez
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NATO kills drone in Latvian airspace - army
NATO fighter jets shot down on Monday a 'drone' that entered Latvian airspace from Russia, according to the Baltic nation's military. This is the latest incident in a long line of security incidents near Europe's eastern borders. The origin of the drone was not immediately known. In recent months, Ukraine has increased its long-ranged drone attacks against Russia, including the Baltic Sea region, where several Ukrainian military aircraft have entered the airspace of Finland and Latvia. In a social media post, the Latvian army stated that "Allied fighter 'jets successfully shot down a drone which was flying into Latvian Airspace!" The authorities warned residents in eastern Latvian regions earlier Monday to take shelter inside due to the threat. The alert was lifted 'when the drone had been shot down,'?the army? said. The 'war in Ukraine' is spreading to NATO's northern border, according to fears sparked by military drones that have crossed into Russia's airspace. Last month, a NATO jet shot down a suspected Ukrainian drone in Estonia. (Reporting and writing by Janis Sytas and Andrius Laizans, editing by Terje Solsvik).
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Gold continues to fall on fears of an interest rate hike in the US
Gold prices fell on Monday to their lowest level in more than two-months, amid fears of an increase in U.S. interest rates following a positive jobs report. Meanwhile, renewed hostilities across the Middle East drove oil prices up and increased inflation concerns. Gold spot was down 0.3% to $4,315.71 an ounce at 0725 GMT. It had fallen to its lowest level since March 23 during the earlier session. Prices dropped by?3% Friday, reaching a two-month low. U.S. Gold Futures for August Delivery were down 0.6% to $4,341.10. Kelvin Wong is a senior analyst at OANDA. He said that gold was under pressure due to the increased Treasury yields. The yield on the benchmark 10-year U.S. Treasury Note rose, after reaching a two-week-high in the previous session. This increased the opportunity cost of holding non-yielding gold. Israel claimed it had struck military targets on the western and central Iranian coasts, despite reports that U.S. president Donald Trump told Israeli Prime Minister Benjamin Netanyahu not to launch any more attacks. Oil prices rose by more than $4 per barrel, causing inflation fears and interest rate increases to rise. Gold is often seen as a hedge to inflation. However, higher interest rates can weigh down on this non-yielding material. The U.S. Economy posted a strong third consecutive month in May. This confirms that the labour market is gaining momentum after last year's stumble. It also gives the central bank more leeway to keep rates stable amid rising inflation caused by the Iran War. According to CME Group’s FedWatch tool, the markets are pricing in an increase by the Federal Reserve before year-end. There is a 72% probability of this happening by December. Cleveland Fed President Beth Hammack stated on Friday that the new job numbers showed the labour market was?roughly in balance and close to?full employment', while the continued high inflation could?require the Fed raising rates soon to control it. Silver spot was down by 0.5% to $67.47 an ounce. Platinum fell 0.6% to 1,766.70 while palladium rose 0.3% to $1229. (Reporting and editing by Subhranshu sahu in Bengaluru, Sherry Jacob-Phillips).
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Wall Street Journal, June 8,
These are the most popular?stories from the Wall Street Journal. These?stories have not been?verified' and we cannot?guarantee? their?accuracy. Israel and Iran traded missile strikes Monday, after the U.S. brokered a ceasefire in early April. This was their first direct attack since the truce went into effect. - Nvidia is ?teaming up with South Korea's SK Telecom and Naver ?to build gigawatt-scale artificial-intelligence cloud infrastructure in Asia. - Intesa Sanpaolo said ?it has launched a EUR30.66 billion ($35.33 ?billion) unsolicited cash-and-share ?takeover bid for Monte dei Paschi di Siena. Roche has announced that it has signed an exclusive licensing agreement and collaboration with Nurix Therapeutics for the development of blood cancer drug,?bexobrutideg. The deal is worth up to $2.3 Billion. OPEC and their 'allies' agreed to increase oil production?by 188,000??barrels a day in July, amid Middle East tensions which have?disrupted a major oil?shipping?route. Ingredion announced that it had agreed to purchase Tate & Lyle, a British company, for PS2.7 billion ($3.6 'billion) cash. The deal stipulated a price of?595 per share.
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Gold continues to fall on fears of an interest rate hike in the US
Gold prices sank on Monday due to a growing 'fear of an increase in U.S. interest rates? after a positive jobs report. Meanwhile, renewed hostilities across the Middle East drove oil prices up and increased inflation fears. Gold spot fell 1% at $4,287.66 an ounce as of 0544 GMT. Prices dropped about 3% Friday, reaching their lowest level since March 24. U.S. Gold futures for August delivered?were down by 1.2% to $4,311. The market's hawkishness is reflected in the Fed futures, said Kelvin Woong, senior analyst at OANDA. He added that higher Treasury yields are further pushing gold down. The yield on benchmark 10-year U.S. Treasury notes rose, after jumping to two-week highs in the previous session. This increased the opportunity cost for holding non-yielding gold. Israel claimed it had struck military targets in western and central Iran, despite the fact that U.S. president Donald Trump reportedly warned Israeli Prime Minister Benjamin Netanyahu not to launch any further attacks. Oil prices increased by more than $3 per barrel, causing inflation fears and interest rate increases to rise. Gold is often seen as a hedge to inflation. However, rising interest rates can weigh on this non-yielding precious metal. The U.S. Economy posted a strong third consecutive month of job gains in the month of May. This confirms that the labour market is gaining momentum after its stumble last year, and gives the central bank more room to maintain rates despite rising inflation caused by the Iran War. According to CME Group’s FedWatch tool, the markets are pricing in an increase by the Federal Reserve before year-end. There is a 72% probability of this happening by December. Cleveland Fed President Beth Hammack stated on Friday that the new jobs numbers showed the 'labour market is roughly balanced?and close to full employment. Meanwhile, continued high inflation may require the Fed raising rates soon to control it. Silver spot was down by 2.2% to $66.33, platinum fell 2.1% to 1,739.78 and palladium dropped 1.5% to 1,207.50. (Reporting by Pablo Sinha in Bengaluru; Editing by Subhranshu Sahu)
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Gold continues to fall on fears of an interest rate hike in the US
Gold prices extended their?losses Monday due to a growing?fear of an U.S. rate?hike?following a strong jobs?report, while renewed hostilities and inflation concerns in the Middle East drove oil prices up. By 0429 GMT, spot gold had fallen 0.2% to $4319.09 an ounce. Prices dropped by about 3% Friday, reaching their lowest level since March 24. U.S. Gold Futures for August Delivery?were down by 0.5% to $4,343.20. The market's hawkishness is reflected in the Fed futures, said Kelvin Woong, senior analyst at OANDA. He added that higher Treasury yields are further pushing gold down. The yield on benchmark 10-year U.S. Treasury notes rose, after soaring to a 2-week high in the previous session. This increased the opportunity cost for holding non-yielding gold. Israel claimed it had struck military targets in western and central Iran, despite the fact that U.S. president Donald Trump reportedly warned Israeli Prime Minister Benjamin Netanyahu not to launch any further attacks. Oil prices increased by more than $3 per barrel, causing inflation fears and interest rate increases to rise. Gold is often seen as a hedge to inflation. However, rising interest rates can weigh down on this non-yielding precious metal. The U.S. Economy posted a strong third consecutive month of job gains in the month of May. This confirms that the labour market is gaining momentum after its stumble last year, and gives the central bank more room to maintain rates despite rising inflation caused by the Iran War. According to CME Group’s FedWatch tool, the markets are pricing in an increase by the Federal Reserve before year-end. There is a 72% probability of this happening by December. Cleveland Fed President Beth Hammack stated on Friday that the new jobs figures show the labour market is roughly in balance and near full employment. However, the continued high inflation could require the Fed raise rates quickly to contain it. Silver spot was steady at $67.86 an ounce. Platinum lost 0.5% at $1,767.42 and palladium remained unchanged at $1.225.67. (Reporting by Pablo Sinha in Bengaluru; Editing by Subhranshu Sahu)
London Copper nears 1-week Low on Continued Inflation Worries
London copper prices remained at a one-week low on Monday due to weaker Chinese 'prices, and expectations that the Federal Reserve will be influenced by strong U.S. job data and higher oil prices.
The benchmark three-month copper price on the London Metal Exchange rose 0.19%, to $13,545 per metric ton at 0710 GMT.
The LME copper fell to its lowest level since May 28 due to a rising dollar, and fears of inflation.
Industrial metals are more dependent on economic growth as a result of higher?interest rates.
The official data revealed that the U.S. added 172,000 new jobs in May. This was more than twice what analysts expected. The data was released less than two weeks before Kevin Warsh made his debut as the?head of U.S. Federal Reserve.
According to CME's FedWatch, the expectation of a rate increase in December has risen to around 78%.
The most traded copper contract at the Shanghai Futures Exchange fell 1.54%, to 104120 yuan (15,340.87 dollars) per ton.
The stock market in China and Hong Kong opened lower on Monday, following their U.S. counterparts.
Yangshan Copper Premium
Oil prices also increased by?4.84% after Iran and Israel traded fire on Monday.
Aluminium fell by 0.06% on the LME, while zinc dropped by 0.31%. Lead?lost 0.5 %, and nickel grew 0.08%. Tin declined 2.71%.
Aluminium fell 0.8% on?SHFE. Zinc dropped 0.87%. Lead slid by 0.37%. Nickel added 0.25%. Tin dropped by 6.62%.
(source: Reuters)