Coal production increases by 8.2pc y-o-y in August
Coal output in India rose to 58.33 million tonnes in August 2022, up by 8.2 percent from the 53.88 million tonnes recorded in the corresponding period of last year. According to Coal Ministry data, Coal India Limited (CIL) as well as other captive mines recorded a growth of 8.49 and 27.06 percent respectively by producing 46.22 million tonnes and 8.02 million tonnes, respectively. Coal dispatch went up by 5.41 percent to 63.43 million tonnes in August 2022 compared to 60.18 million tonnes recorded in August 2021. In August 2022, CIL and other captive mines registered a growth of 5.11 percent and 26.29 percent by dispatching 51.12 million tonnes and 8.28 million tonnes of coal, respectively. The power utilities dispatch grew by 10.84 percent to 54.09 million tonnes during August 2022 as against 48.80 million tonnes in the corresponding period of last year, due to rising demand for power.
China’s August iron ore imports rise 5.5pc
China’s imports of iron ore in August rose 5.5 percent from the prior month, customs data showed on Wednesday, even as operating rates at blast furnaces only slightly improved. The world’s top iron ore consumer brought in 96.21 million tonnes of the steelmaking raw material last month, up from July’s 91.24 million tonnes, the General Administration of Customs said. However, that was down slightly from the 97.46 million tonnes imported in August 2021. “Most major iron ore suppliers in Australia and Brazil are not fair-weather producers, meaning if they mine it, it will come to China,” said Atilla Widnell, managing director at Navigate Commodities in Singapore.
India could approve sugar exports in two tranches
India is set to allow sugar exports in two tranches for the next season beginning in October, as the world’s biggest producer of the sweetener tries to balance the interests of its farmers and consumers, government and industry officials told Reuters. Exports by India, which has restricted shipments in the current season, could weigh on global prices, and help swell supplies across Asia. “The government has initiated a process to allocate quotas for the next season,” said Prakash Naiknavare, managing director of the National Federation of Cooperative Sugar Factories Ltd. The export policy for the 2022/23 season starting from Oct.1 is likely to be announced in September, he said.
Canadian wheat output expected to soar in 2022-23
Canadian wheat production in the 2022-23 marketing year is forecast to increase 55 percent over the previous year to 34.6 million tonnes, according to the latest projections from Statistics Canada. If realized, it would be the third largest wheat crop in Canadian history. The increase is largely driven by better growing conditions in Western Canada, according to Statistics Canada. The agency said yields are expected to increase year-on-year by 41 percent to 51.1 bushels per acre. Harvested area also is expected to increase by 9.4 percent to 24.9 million acres. The increase in expected total wheat production is largely attributable to spring wheat, which is anticipated to rise by 57 percent to 25.6 million tonnes.
Oil producer group OPEC+ surprises energy markets with a small production cut
A group of some of the world’s most powerful oil producers on Monday agreed on a small output cut from next month, surprising energy markets at a time of considerable turmoil. OPEC and non-OPEC partners, an influential energy alliance known as OPEC+, decided to cut production targets by about 100,000 barrels per day from October. Energy analysts had broadly expected the group to stay the course with its production policy. Last month, OPEC+ agreed to raise oil output by just 100,000 barrels per day. The minuscule boost was widely interpreted as a rebuff to U.S. President Joe Biden after his visit to Saudi Arabia to ask the OPEC kingpin to pump more to cool prices and help the global economy.
Dairy prices rebound at auction
Dairy prices rose at the latest global auction, snapping five consecutive declines, as buyers pay up for limited milk supply. The Global Dairy Trade price index rose 4.9 percent to 1185 at the fortnightly auction overnight. Dairy prices have shed a quarter of their value after hitting record levels in March this year, as demand was dented by Covid-19 disruptions and worsening economic conditions around the world. However buyers appear to be returning to the market as global milk supply falls as adverse weather and higher costs crimp production. “It is too early to say the market has turned, but it is clear that the global dairy market is willing to chase product at current price points, and that demand is apparent,” said NZX dairy insights manager Stuart Davison.
Ample world rice supplies to cushion impact of Pakistan
Abundant rice supplies in key exporters may largely offset an expected drop in output after floods in Pakistan and severe heatwave in China damaged crops, capping any gains in prices from steady Asian demand. Pakistan, the world’s fourth-largest rice exporter, suffered extensive damage to agriculture, including rice, as floods ravaged large swathes of its farmland, while extremely high temperatures in parts of China at the end of August have taken a toll on rice output in the world’s biggest importer of the staple. However, global rice stockpiles are pretty comfortable and an improving Indian crop outlook should quell any supply concerns and limit any price increases from recent strong demand that has emerged from Bangladesh, said a Singapore-based trader at one of the world’s top rice trading companies. Pakistan is forecast to have lost around 10 percent of its 2022 estimated rice production of around 8.7 million tonnes, while China has suffered some damage, although the extent of crop losses is not clear, traders said.