GRAINS-Chicago Wheat slips as harvest pressure begins; soybeans to gain weekly
Chicago wheat futures retreated on Friday following a rally to cover shorts before the holiday season in the U.S. as harvest pressure in Europe and Black Sea region looms. As of 0211 GMT the most-active contract for wheat fell 0.59%, to $5.87 per bushel. However, it remains close to a four-month-high and is expected to gain weekly. Wheat gained some support during the previous trading day, as weather concerns in certain parts of the U.S.A. and Europe led speculators in those regions to cover their short positions.
Analysts say that the Vaca Muerta shale is a major factor in Argentina's move towards energy independence.
Rystad Energy analysts stated on Tuesday that the shale gas formation of Vaca Muerta in Argentina will produce a large amount of oil and gas by the first quarter 2025, which is driving the nation to achieve energy independence and its ambitious plans to become a major exporter for liquefied gas. Vaca Muerta is a huge unconventional oil reserve that Argentina needs to boost its economy and reduce costly imports. Rystad estimates show that oil production in Argentina increased by 26% on an annual basis to over 447,000 barrels a day in March.
Eni, YPF Sign Agreement On Argentina LNG Project
Italian energy group Eni and Argentina's YPF on Friday signed an agreement on the Argentina LNG (ARGLNG) project during a meeting in Rome between Italian Prime Minister Giorgia Meloni and Argentine President Javier Milei.Eni will act as a strategic partner of YPF on the Argentina LNG project and make use of the know-how it has developed in its floating LNG projects in Congo and Mozambique, the Italian group said in a statement.The Argentina LNG project is designed to develop the resources of the onshore Vaca Muerta field and serve international markets.
Palm oil prices drop on weak Chicago exchanges but export data limits losses
The price of Malaysian palm oils futures fell on Thursday after four sessions of gains. This was due to the weakness in Chicago soyoil, but strong export data helped limit losses. At closing, the benchmark palm oil contract on Bursa Malaysia's Derivatives Exchange for July delivery fell 61 ringgit or 1.55% to 3,862 Ringgit ($902.34) per metric ton. AmSpec Agri Malaysia, an independent inspection company, said that the number of products shipped between April 1 and 15 increased by 14.2%, to 514 713 tonnes, from 450 657 tonnes.
Palm oil beats out weaker oils at Dalian and Chicago exchanges
After four sessions of gains on the Chicago and Dalian commodities exchanges, the price of Malaysian palm oils futures fell on Thursday. Market participants were awaiting the export data. By midday, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange for July delivery had fallen 48 ringgit or 1.22% to 3,875 Ringgit ($904.74) per metric ton. A Kuala Lumpur based trader stated that "today, CPO Futures are taking a rest after the recent rally... The contract dropped, following weaker Chicago soybean oil and Dalian vegetable oils.
Argentina's YPF suffers a net loss in the first quarter
YPF, the state-owned oil company in Argentina, reported a loss of $10m for the first quarter. This was due to lower demand during the season and lower export volumes. This loss is compared to the net profit of $657 millions in the first quarter 2024. The revenue, on the other hand, increased by 7% over a year earlier to $4.61 billion. This was due in part to higher fuel prices in local markets, but also a decline in oil exports and lower demand for diesel.
Bunge reports Q1 profit beating as uncertainty over tariffs fuels demand
Bunge Global, a grain trader and processor, posted a lower-than-expected first quarter profit decline on Wednesday due to increased export demand. The company's first-quarter earnings were the lowest in five years due to a combination of lower ocean freight returns and weaker oilseed crushing margins in North America, Argentina and South America. Bunge shares rose 1.1% in pre-market trade to $79.01. Rising global trade tensions stoked by U.S. President…
Argentina expects an $8 billion surplus in the energy trade balance for this year
Federico Valler said that Argentina is expecting an $8 billion surplus this year in its energy trade, up from a $5.7 million surplus last year. This is due to new government policies which encourage investment. An executive of Argentina's second largest shale producer Vista Energy told reporters earlier on Tuesday that the country may register an energy surplus between $5 billion to $6 billion this coming year. This is due to the activity of the Vaca Muerta Formation, which is one of the largest shale deposits in the world.
Equinor sells 60% of Brazil's Peregrino oil field to Prio at $3.5 billion
Equinor announced on Friday that it's Brazil unit had agreed to sell to PRIO SA a 60% interest in the Peregrino Oil Field for up to $3.5 Billion. Prio will pay Equinor a base amount of $3.35billion, plus additional interest payments up to $150m. It will also take full ownership of the oilfield after the transaction closes. Last year, it bought the remaining 40 percent stake from Sinochem in China in a deal worth nearly $2 billion. Equinor is actively seeking to divest assets from its portfolio.
Local media report that Argentina's YPF has ruled out building a land-based LNG facility
YPF, Argentina's state-run energy company, has ruled out the construction of an onshore liquefaction facility for natural gas. Instead, it will rely on floating vessels to carry out this process. Horacio Marina, CEO of Rio Negro LNG, said in an interview that there will be no onshore plants and the three phases of its plan to export LNG will be done by ship. Marin explained that the timeframes are shorter than for a land-based facility, and all projects are turnkey so you will know exactly how much they cost.
YPF's earnings could be affected by lower crude oil prices
A Friday presentation to investors revealed that the state-owned oil company in Argentina could have its core earnings fall this year due to lower crude prices. According to the firm's current estimates, its earnings before interest taxes depreciation amortization (EBITDA), in 2025, will range from $5.2 billion to $5.5 billion assuming Brent crude at $72.5 per barrel. The firm estimates that if crude sold for $60 per barrel, projected EBITDA would drop to between $4.2 and $4.5 billion.
Argentina wants to increase lithium production by 75% by 2025 and sees no danger from trade war
The Argentine Chamber of Mining Companies said that Argentina, which is the fifth largest lithium producer in the world, will produce 130,800 metric tonnes of lithium carbonate (LCE) by 2025. This represents a 75 percent increase over 2024. According to Alejandra Cardona of CAEM, the executive director, a major boost in production will come from the expansion of operations in Catamarca, Jujuy and Salta, which are the provinces north with the biggest lithium operations. Cardona reports that Argentina has six lithium operations.
Bolivians tighten their belts after a new reality of inflation bites
Angelica Zapata, a Bolivian homemaker in La Paz's highland, is learning to accept a new reality of inflation. Prices are rising at their fastest rate in nearly two decades due to the shortages in fuel and dollars. Landlocked gas and grain producers are facing their most severe economic crisis since the global financial crises. Foreign currency reserves have been dwindling due to stalled exports and energy production, which has stoked unrest and protests.
As Chinese demand slows, mining consolidation will accelerate.
The mining industry is expected to consolidate due to the decline in industrial metals demand, especially in China, the top consumer. Investors said that for now, the high costs of mergers and acquisitions among diverse miners and the significant chance of rejection could hinder full-scale activity. This is ahead of the global gathering of the Copper Industry for the CESCO in Santiago, Chile, next week. LSEG data shows that M&A activity in the mining…
As Chinese demand slows, mining consolidation will accelerate.
The mining industry is expected to consolidate due to the decline in industrial metals demand, especially in China, the top consumer. Investors say that for the moment, mergers and acquisitions among diversified miners may be hindered by prohibitively high costs and a significant chance of rejection. LSEG data shows that M&A activity in the mining sector dropped 27% in terms of value to $15 billion during the first quarter compared with the same period in 2024. BHP shares are down 26% since the beginning of 2024.
Sources claim that Indian state firms are interested in SQM’s lithium projects in Australia.
Four sources have confirmed that four Indian state firms were in discussions with Chilean mining company SQM about acquiring a 20% stake of its two projects in Australia. The deal would cost $600 million. This is New Delhi's largest effort to secure supplies for the metal used in EV batteries. Sources said that Khanij Bidesh India Ltd, a government-backed company, has partnered up with Coal India Ltd, Oil India Ltd, and ONGC Videsh in order to secure a 20% stake in SQM’s Mount Holland Lithium Project and Andover Lithium Project in Western Australia.
Palmetto slips with a second consecutive weekly loss
Palm oil ended lower on Friday, and recorded a second consecutive weekly loss. This was due to a decline in Chicago soyoil and the persistently slow performance of Malaysian palm oil exports. The benchmark contract for palm oil delivery in June on the Bursa Derivatives exchange lost 37 ringgit or 0.84% to 4,376 Ringgit ($990.27). The contract has lost 4.37% in the last week. Anilkumar bagani, Sunvin Group's head of research, said that the futures traded sideways with prices opening lower.
VEGOILS - Palm up in hopes of better demand, but second consecutive weekly loss
Palm oil prices rose on Friday, on the hope of improved demand from India and China. However, they were still heading for their second consecutive weekly loss because of weakness in Chicago soyoil contracts and Malaysian palm oil exports that have been slowing down. By midday, the benchmark contract for palm oil delivery in June on the Bursa Derivatives Market gained 5 ringgit or 0.11% to 4,418 Ringgit ($999.32). This week, the contract has fallen by 3.45%.
Argentine workers strike, halting soy crushing factories
The CIARA industry association reported that on Thursday, activity was halted in Argentina's soy-processing plants as the oilseed workers union SOEA began a strike to protest layoffs and the actions of the national security forces. The strike began late Wednesday night after members of Argentina's Naval Prefecture interfered with a demonstration by biodiesel producer Explora SA, in the Rosario area, a major agribusiness center. The Federacion Aceitera…
Local news reports say that Equinor is planning to sell its assets in Argentina.
Mas Energia, a Mas Energia-published online magazine, reported that the Norwegian oil and gas company Equinor was looking to sell their onshore assets located in Argentina's Vaca Muerta Region, citing anonymous sources. Equinor has appointed Bank of America as the agent to sell its 30% stake in Bandurria Sur and 50% in Bajo del Toro Norte. However, no decision on the divestment has been taken yet, according to the report. Mas Energia said that the Norwegian company has no plans to sell its stakes offshore licenses in Argentina.
