Iron ore price surges to record high
Iron ore prices jumped to a fresh high on Monday on robust Chinese demand. Iron ore futures on the Dalian Commodity Exchange, for September delivery, closed 4.3 percent higher at 1,145 yuan. The contract jumped 6.3 percent earlier. According to Fastmarkets MB, Benchmark 62 percent Fe fines imported into Northern China (CFR Qingdao) were changing hands for $193.58 a tonne on Tuesday, up 3.93 percent from Friday trade. The high-grade Brazilian index (65 percent Fe fines) also advanced to a record high of $226.90 a tonne. “Iron ore prices are mainly supported by structural contradiction of supplies, there’s shortage in medium and high-grade products,” Zhuo Guiqiu, analyst with Jinrui Capital, told Reuters.
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Improving dairy
The dairy sector is a vital asset for Pakistan, and it attributes 11 percent of the country’s GDP. According to the Economic Survey of Pakistan (2019-2020), milk’s annual production is nearly 60 billion litres. If its export potential is recognized and determined, it can change the local dairy sector and play a significant role in the country’s economy. According to the Food and Agriculture Organization of the UN, during the past years, global milk production has increased at the international level by more than 59 percent – from 530 million tons in 1998 to 843 million tons in 2018. This increase in milk consumption at the global level can be used as an opportunity for milk-producing countries like Pakistan to enhance their exports and make foreign exchange by providing milk and dairy products to deficient and low milk-producing countries.
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OPEC+ Committee endorses plan to hike crude oil production in May: delegates
OPEC and its allies have the green light to ease back their production cuts, after a key ministerial monitoring committee on April 27 backed previously agreed plans to boost crude oil output from May, delegates told S&P Global Platts. “In the market, we see some optimism and positive dynamics in the indicators of population mobility and the recovery in demand from the largest consumer countries,” Russian Deputy Prime Minister Alexander Novak said in his opening remarks to the Joint Ministerial Monitoring Committee, according to prepared remarks seen by Platts. “At the same time, we must closely monitor the situation and the spread of the coronavirus that is taking place, especially in some countries of the Asian region.” Under the deal, OPEC+ production quotas will rise a collective 350,000 b/d in May, another 350,000 b/d in June, and 441,000 b/d in July. At the same time, Saudi Arabia, which has been holding its output down by an extra 1 million b/d below its quota to help bolster the market, will unwind its extra cut by 250,000 b/d in May, 350,000 b/d in June and 400,000 b/d in July.
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Huge production drop propels natural gas futures higher for second day
A massive day/day decline in U.S. production drove more gains for natural gas futures despite a modest pullback in exports and continued outlooks for moderate early May temperatures. The May Nymex futures contract settled at $2.873, up 8.3 cents day/day. June rose 6.8 cents to $2.942. Spot gas prices also bounced Tuesday ahead of a cool weather system set to move into the central United States midweek. NGI’s Spot Gas National Avg. climbed 13.0 cents to $2.735. With the May futures contract set to roll off the board Wednesday, some volatility along the Nymex curve was expected. However, with pipeline maintenance leading to a huge day/day decrease in production, price gains mounted early in Tuesday’s session. The May contract opened nearly flat on the day but quickly climbed a few pennies as a slew of pipeline maintenance events in the Northeast resulted in a 2.4 Bcf day/day drop in production.
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Nilgiris tea industry exempted from lockdown
Nilgiris Collector has permitted tea factories for processing, production of tea with minimum workers by strictly following the SOP of Covid-19. The Nilgiris Collector Innocent Divya has exempted tea industry from the lockdown. In her order, she has stated that this follows the representation of the Department of Industrial Safety and Health in The Nilgiris that the tea industry had sought exemption for continuous processing of tea and other associated activities as tea comes under essential commodity.
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Center-South Brazil h1 April sugar production decreased 33pc on year: survey
Sugar production in the key Center-South Brazil region is expected to total 650 thousand mt in the first half of April, a decrease of 33 percent year on year, an S&P Global Platts survey of 11 analysts showed April 26.
Of the 11 analysts surveyed, two large trading houses estimated the total cane crush would be between 9.0 million mt and 22.7 million mt. The average estimate was for a total cane crush of 15.95 million mt, a 29.1 percent drop year on year.
“The drop in cane crushed, sugar output, and ethanol produced can be explained by a two-week delay to the start of the harvest because of poor cane maturation and less mills in operation as of April 16 compared to last year,” said a Sao Paulo-based trader. “There were around 20-30 less mills in operation as of April 16 compared to last year.”
Weather in the Center-South was favorable for crushing during H1 April, with an estimated 0.6 days lost to rain and about 150-160 mills active as of April 16.
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China’s carbon-neutrality goals
China’s ambitious carbon-neutrality goals do not bode well for miners in the coal-producing province of Shanxi, which is already facing financing difficulties after a series of high-profile domestic bond defaults last year.
As a result, local authorities have stepped in to court financial assistance.
At a conference attended by representatives of 160 financial institutions on Wednesday, local state firms and financial authorities joined efforts to shore up confidence by promising a timely repayment of mature debt.