Iron ore price climbs to multi-month high on upbeat Chinese data
Iron ore futures climbed to multi-month highs on Tuesday, with sentiment boosted by upbeat economic data in top consumer China and mounting expectations of a flurry of pre-holiday replenishment from steelmakers in the coming weeks.
The Most-Traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) ended daytime trading 2.93 percent higher at 1,002 yuan ($140.58) a metric ton, the highest since August 2021.
PFA shuts four dairy production units
The Punjab Food Authority (PFA) has stopped the production of four dairy units and issued notices to 232 others to make improvements during a province-wide inspection on Tuesday.
The Food safety teams inspected 365 dairy units in a daylong operation with the aim to ensure the availability of dairy products in the market as per the food safety standards defined in the Punjab Pure Food Regulations.
Bangladesh’s tea production soars
In an unprecedented turn of events, Bangladesh’s tea production has experienced a significant surge in 2023. With the harvests in the initial 11 months surpassing the previous year’s total output by an impressive 10.79 percent, the total yield stands at 95.34 million kilograms. Despite an initial sluggish start to the season owing to inadequate rainfall, the weather conditions eventually became favorable, contributing to what might be the country’s first-ever annual production exceeding the 100 million kilogram mark, once December’s figures are taken into account.
US coal production rises 7.5pc on year
The US produced 11.3 million st of coal in the week ended Dec. 23, up 7.5 percent from the year-ago week, according to US Energy Information Administration data released Dec. 28.
US Coal Production was 2 percent higher compared with the week before. From Jan. 1 through Dec. 23, the US produced 571.7 million st, down 2.1 percent from the 2022 period. Most major US coal producing regions increased output compared with the prior week. The Powder River Basin boosted weekly coal production by the steepest margin.
The Powder River Basin consists of Wyoming and Montana, which produced 5.2 million st in the latest reported week. PRB coal production was 3.2 percent higher on the week and 6.8 percent higher on the year. Through 51 weeks, the PRB produced 261.1 million st, down 2.7 percent from the corresponding 2022 term.
Powder River Basin 9,400 Btu/lb rail coal for prompt-quarter delivery was unchanged on the session Dec. 22 at $14.95/st, according to the Platts Weekly Price Survey by S&P Global Commodity Insights.
Rice cartels control 60pc of rice production
Rice cartels have been accused of controlling over 60 percent of the country’s rice production, causing issues with rice seedlings and the supply of rice.
The Coalition of Rice Millers Malaysia chairman Marzukhi Othman claimed that four to five major companies are involved with controlling padi mills, which includes seed production, Utusan Malaysia reported.
He also claimed that these cartels wield considerable influence in setting the prices for padi, rice, and padi seed suppliers, and they have also disregarded government directives at times.
“They have essentially been shaping the direction of the country’s padi industry,” Marzukhi was quoted as saying.
India’s sugar output drops
Indian mills produced 7.4 million metric tons of sugar between Oct. 1 and Dec. 15, a 10.7 percent fall from the previous year, as many mills in Maharashtra and Karnataka started operations nearly a fortnight late this year, a leading trade body said on Monday.
Maharashtra’s sugar production fell to 2.44 million tons from 3.3 million tons, while Karnataka’s production dropped 11.7 percent to 1.7 million tons, the Indian Sugar Mills Association said in a statement. Production in the northern state of Uttar Pradesh rose 9 percent to 2.2 million tons as mills started operations early there, it said.
Oil prices settle up 3pc on supply concerns after oilfield shutdown in Libya
Oil Prices climbed on Wednesday, settling up about 3 percent after a disruption at Libya’s top oilfield added to fears that mounting tensions in the Middle East could disrupt global oil supplies.
Brent futures rose $2.36, or 3.1 percent, to settle at $78.25 a barrel. U.S. West Texas Intermediate (WTI) crude rose $2.32, or 3.3 percent, to settle at $72.70.
Both crude benchmarks settled higher for the for the first time in five days with the biggest daily percentage gain for WTI since mid November.
Natural gas prices experience decline
Natural Gas Prices have witnessed a decline of -0.65 percent, settling at 212.5, primarily driven by record-breaking levels of domestic natural gas production in the United States. This surge in production has allowed utilities to fortify reserves, resulting in inventories that currently stand 10 percent above the seasonal average. Despite this surplus, the potential downside impact is mitigated by increased seasonal demand, particularly with the anticipation of cold weather in January. Additionally, the surge in exports has provided further support to natural gas prices, as gas flows to liquefied natural gas (LNG) export facilities reached an unprecedented high in December.
Rabi crop acreage witnesses a decline, pulses fare the worst
Sowing for the Rabi cropping season 2024-25 is nearly complete, but preliminary data indicate that crop production may be low for the season. The acreage under Rabi crops is approximately 1,651,000 hectares less than usual, with pulses experiencing the lowest acreage. A change in rainfall pattern is likely the reason for the reduction in acreage.
According to Agriculture Ministry data, Rabi crops were sown on a total of 62.96 million hectares until the last week of December 2023, whereas sowing was done on 64.61 million hectares until the last week of December 2022.