As the heat fades, spot prices will continue to fall.
The day-ahead power prices in France and Germany fell for the third consecutive day on Thursday, as temperatures began to cool after a prolonged heatwave. Meanwhile, nuclear availability increased in France. The price decline was less dramatic than it had been on Wednesday. This is because the temperatures are expected to drop more slowly and German wind output will be lower after a sudden increase in mid-week. LSEG data revealed that the French baseload day-ahead contract was down 11.1% at 72.25 Euros per Megawatt Hour (MWh) as of 1101 GMT.
Palm prices rise on expectation of lower production and strong demand
The price of Malaysian palm oils futures rose slightly on Thursday as the market grew stronger due to lower production and demand from major destinations. At the midday break, the benchmark palm oil contract on Bursa Derivatives Exchange for September delivery gained 18 ringgit (0.45%) to $3,983 ringgit (USD $943.39) a metric tonne. The contract dropped 3.9% over the last two sessions. David Ng is a proprietary trader with Kuala Lumpur's trading firm Iceberg X Sdn Bhd.
The fragile Middle East truce has knocked down the prices of crops that are tied to oil.
The price of crops around the globe has been impacted by a shaky truce between Iran and Israel, especially those that can be converted into biofuels. Prices are affected by the price for crude oil. The price of crude oil dropped sharply after President Trump announced a ceasefire. This hit futures contracts and stocks for vegetable oils like Malaysian palm, European rapeseed and Chicago soyoil. John Duvenaud, Winnipeg, Canada's crop markets analyst…
What is more influential on crude oil? What is more influential: US bombs, or Iran's quiet allies?
The sharp decline in the Israel-Iran War Premium for Crude Oil shows how a few key words can move the market. However, it also hides the influence of those who remain largely silent. Brent futures, the global benchmark, plunged after U.S. president Donald Trump announced a "complete" and "total" ceasefire will be implemented between Israel and Iran. Brent crude oil ended Monday at $71.48 per barrel, down 7.2% compared to its previous close. It has also given up on its earlier rally which saw it reach as high as $81.40 - the highest since January 17.
Palm oil falls by over 3% due to weak Chicago soyoil and crude oil prices
After U.S. president Donald Trump announced the ceasefire agreement between Israel and Iran, Malaysian palm futures dropped more than 3%, ending a four-day rally. They were pressured by lower rival Chicago soyoil prices and crude oil, as well as the weaker Chicago oil and soyoil. At the midday break on the Bursa Derivatives Exchange, the benchmark palm oil contract, for September delivery, lost 126 Ringgit or 3.05% to 4,000 Ringgit ($940.73) per metric ton, its largest daily loss since April 7.
GRAINS-Chicago soyabeans rebound after initial pressure from weaker soybean oil; corn and wheat dip
Chicago soybean futures stabilized after briefly being weighed down due to a drop in soyoil, which was attributed to easing concerns about crude oil supply disruptions from the Middle East. The most active soybean contract increased 0.14%, to $10.48-2/8 a bushel. This ended a two-day loss streak. Soyoil fell 1.03% to 52.69cents per pound. The oil prices fell on Tuesday, to their lowest levels in over a week, after Trump announced that a ceasefire had been reached between Iran and Israel.
What is more influential on crude oil? What is more influential: US bombs, or Iran's quiet allies?
The sharp decline in the Israel-Iran War Premium for Crude Oil shows how a few key words can move the market. However, it also hides the influence of those who remain largely silent. Brent futures, the global benchmark, plunged after U.S. president Donald Trump announced a "complete" and "total" ceasefire will be implemented between Israel and Iran. Brent crude oil ended Monday at $71.48 per barrel, down 7.2% compared to its previous close. It has also given up on its earlier rally which saw it reach as high as $81.40 - the highest since January 17.
Sources say that Brazil's Petrobras has held off on raising fuel prices amid tensions with Iran.
Petrobras, the Brazilian oil company, is closely watching geopolitical tensions that have been driving up global oil prices in recent weeks. However, it does not intend to adjust domestic fuel prices at this time, according to two sources. Sources, who spoke on condition of anonymity said that the state run oil giant was waiting for a sustained change in Brent crude price before considering any changes to prices. The global benchmark Brent price fluctuated on Monday. It reached a five-month peak before dropping 1% to $76.31 per barrel.
Soybeans and grain prices fall as Middle East tensions are in the spotlight
Chicago soybean futures slipped lower on Monday as they unraveled gains made after crude oil prices rose on fears that a U.S. strike on Iranian nuclear facilities would disrupt supply. By 1128 GMT, the most active soybean contract had fallen 0.2% to $10.58-3/4 a bushel. Soyoil rose 0.8% to $54.9 cents per pound. The oil price surged in the early trade after the U.S. attacked Iranian nuclear sites on the weekend. As a biofuel, soyoil prices are closely linked to crude oil because it is used as a replacement for fossil fuel. The weak demand for U.S.
Palm prices rise for the fourth consecutive session as crude oil remains firm and the ringgit is soft.
Malaysian palm futures closed higher on Monday after reversing losses earlier in the day. Stronger crude oil prices, a weaker ringgit and Dalian oil's weakness capped the gains. The benchmark palm-oil contract for September delivery at Bursa Malaysia's Derivatives exchange gained 7 ringgit or 0.17% to 4,125 Ringgit ($961.09) per metric ton. The contract has been rising for four consecutive sessions. A Kuala Lumpur-based dealer said that higher crude oil prices in the Asian hours had limited the drop on palm prices, despite a weaker Dalian palmolein.
VEGOILS-Weak Dalian drags palm lower, firm crude, soft ringgit cushion fall
Malaysian palm futures fell on Monday as Dalian oil, a rival oil company, was weaker. Crude oil prices were also higher and the ringgit was weaker. At midday, the benchmark palm oil contract on Bursa Derivatives Exchange for September delivery fell 12 ringgit or 0.29% to 4,106 Ringgit ($959.79). The contract increased in three successive sessions. A Kuala Lumpur-based dealer said that higher crude oil prices in the Asian hours had limited the drop on palm prices, despite a weaker Dalian palmolein.
GRAINS: Soybeans rise as soyoil increases on Middle East tensions, but corn falls on favorable weather
Chicago soybean futures edged higher on Monday. This was supported by soyoil price gains after the U.S. attack on Iranian nuclear installations stoked fears about global crude oil supply. As of 0301 GMT, the most active soybean contract increased 0.09% to $10.61-1/2 per bushel. Soyoil rose 1.14% to 55.09 Cents per Pound. The U.S. launched a major attack on Iranian nuclear sites at the weekend. This escalation boosted soyoil prices, which are closely linked to biofuels.
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.
Russell: What is not happening in Middle East crude oil supply is more important than what is.
In times of increased tensions in the Middle East, it's more important to focus on what isn't happening than to fixate on the dramatic headlines about tit-fortat air and rocket strikes between Israel and Iran. This means that from the perspective of the crude oil market, it's important to focus on the fact that not a single barrel of crude supply has been lost. It is also in the interest of all parties involved that this continues to be the case. Crude oil prices increased again during early Asian trade on Monday.
Russell: No rush to import US energy while Asia's imports slide under Trump
Asian countries have not rushed to buy U.S. commodities of energy, despite President Donald Trump's call for a reduction in trade surpluses. The real deal in any future talks between China and the Trump administration will involve the three major energy commodities. Other Asian economies are also looking to curry favor with Trump, and secure a better deal for themselves than the heavy tariffs that were imposed by his "Liberation Day", announced on April 2 and then paused for 90-days.
Petrobras CEO: Africa will be the main exploration region for Petrobras outside Brazil.
Petrobras wants to develop Africa as its primary region outside Brazil. The CEO of the state-run oil company said this in a broad interview on Thursday. Petrobras CEO Magda Chabriard said that Ivory Coast extended the "red-carpet" to Petrobras when it granted the company the preference for buying nine offshore exploration blocks on Wednesday. She said that Nigeria, Angola and Namibia also expressed an interest in working with Brazil's giant. Chambriard said…
Russell: What is not happening in Middle East crude oil supply matters more.
It can be useful to consider what isn't happening in the Middle East when tensions are rising. On the crude oil markets, this means that we should focus on the fact there has not been a single barrel lost. All parties are interested in this situation. Crude oil prices increased again during early Asian trade on Monday. Brent futures, the global benchmark, gained 2.1% and traded at $75.76 per barrel. Brent crude oil rose to its highest level in almost…
Eni CEO: Oil markets do not expect closure of the Hormuz Strait
Eni's CEO, Eni of Italy, said that oil markets were signaling an unlikely escalation of tensions between Israel and Iran or the closing of the Strait of Hormuz. The Strait of Oman, located between Oman and Iran, connects the Gulf of Oman in the north with the Gulf of Oman in the south. It also links the Arabian Sea to the east. Claudio Descalzi, Eni, said at an energy conference that the markets had not yet pushed crude oil prices above $80 or $90 per barrel…
Russell: No rush to import US energy while Asia's imports slide under Trump
Asian countries have not rushed to buy U.S. commodities, despite President Donald Trump's call for a reduction in trade surpluses. The real deal in any future talks between China and the Trump administration will involve the three major energy commodities. Other Asian economies are also looking to curry favor with Trump, and secure a better deal for themselves than the heavy tariffs that were imposed by his "Liberation Day", announced on April 2 and then paused for 90-days.
Palm oil falls due to softer crudes, rising rival oils and falling stocks
Malaysian palm futures fell for the second consecutive session on Wednesday, to their lowest level in more than two months. They were dragged down by weaker edible oils from rival producers, lower crude oil prices, and higher stocks at May's end. By midday, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange for August delivery had fallen 28 ringgit or 0.72% to 3,836 Ringgit ($905.36) per metric ton. A Kuala Lumpur based trader stated that "slow growth in export demands amidst high stocks levels may continue…
