Indonesia introduces new palm oil taxation rules to boost competition
Indonesia, the world's largest palm oil exporter, will introduce new monthly levies to increase its competitiveness with rival edible oils. This was revealed in a regulation released by the finance ministry on Thursday. The new rules that come into effect this Saturday will set levies on crude palm oil at 7.5% of the price reference set by the government. Documents showed that the levy rate for palm oil refined to a higher degree will be lower, between 3% and 6 percent of the reference rates. Indonesia charges a levy ranging from $55 to $240 per metric tonne for the export of crude palm oil, depending on price brackets set for the monthly benchmark price.
India is considering easing export restrictions on non-basmati risotto as supplies improve
A senior government official announced on Wednesday that India was considering loosening restrictions on non-basmati exports. This comes as inventories of the world's largest exporter of rice have soared, and farmers prepare to harvest their new crop within the next few weeks. This move follows Prime Minister Narendra Modi’s government's implementation of a series farm measures to boost farmers’ incomes in advance of elections in states where growers are a major voting bloc, and after Modi’s defeat at the general election. India has imposed various restrictions on rice exports for 2023…
Turkey's Botas buys 1.6 billion cubic meters of LNG from TotalEnergies over a 10-year period
Alparslan Bayraktar, the Turkish Energy Minister announced on Wednesday that Turkish state-owned energy company Botas had signed a 10-year contract to import LNG from French oil giant TotalEnergies starting in 2027. Bayraktar announced the deal on the social media platform X. The contract, signed at the GasTech conference, Houston, is for the annual delivery of 1.6 Billion cubic meters of LNG. The majority of Turkey's gas is imported from Russia, Iran, and Azerbaijan. However, the country has been working to diversify their long-term supply, as several contracts are due to expire next year. Turkey imports nearly all its gas needs. Last year, it was 50 billion cubic meters.
Andy Home: Nickel market is no longer worried about Russian supply
The market has shrugged off the suggestion by Russian President Vladimir Putin that Moscow could consider capping nickel exports in retaliation to Western sanctions. The London Metal Exchange's (LME) 3-month price managed to make a slight bounce above the $16,000 per metric ton mark, but momentum is fading. It's a long way from the first Russian invasion of Ukraine in February 2022. The fear that sanctions could be imposed on metal produced by Russian giant Norilsk Nickel sparked a massive rally in 2022, which culminated in a complete meltdown of LME nickel. Two and a half year is a very long time on the nickel market.
Palm oil hits a three-week low, as other oils fall and India considers a duty hike
Malaysian palm futures fell to their lowest level for three weeks on Thursday, as a result of the expectation that India will increase import duties and due to the weakness in palm and soyoil contracts on Dalian's market. The benchmark palm-oil contract for delivery in November on the Bursa Derivatives Market fell 53 ringgit (1.36%) to 3,848 Ringgit ($888.07). The market is buzzing about rumours of an increase in import duties in India. "People are expecting a hike in all edible oils, which will have an impact on palm oil price," said a Mumbai trader.
Palm oil hits 3-week low, rival oils also fall as India considers duty hike
Malaysian palm futures fell to their lowest level for three weeks on Thursday, as a result of the expectation that India will increase import duties and due to the weakness in palm and soyoil contracts on Dalian's market. By midday, the benchmark palm oil contract on Bursa Derivatives exchange for November delivery was down 46 Ringgit or 1.18% at 3,855 Ringgit ($890.09) per metric ton. The market is buzzing about a possible increase in import duties for India. "People are expecting the increase on all edible oil soon, which could impact palm oil prices more," said a Mumbai trader.
BofA: Sugar prices will be supported by a smaller Brazil crop
Bank of America Global Research stated in a Monday note that the benchmark raw sugar price in New York is expected to remain firm and may even go up due to tight global supply of sweetener. The bank's analysts said that cane crushing was below expectations in Brazil, which is the world's biggest sugar producer and exporter "because of the dry weather conditions and recent wildfires" in Sao Paulo. The bank also said that wildfires could have an impact on the yields in the Brazilian cane renewal areas, and also the inter-harvest periods. BofA estimates that the global balance of sugar will be a modest surplus of 650,000 tons, resulting in a ratio of stocks to use of 54.1%.
VEGOILS - Palm ends the week with a loss. Malaysia data is being eyed
Malaysian palm oil posted a loss for the week on Friday. The market will be expecting next week's data from the Malaysian Palm Oil Board (MPOB). The benchmark palm-oil contract for delivery in November on the Bursa Derivatives Exchange fell 16 ringgit (0.41%) to close at $3,901 ringgit ($901.34) per metric ton. This week, the contract's value has dropped by 1.91%. The MPOB will release its monthly palmoil data on Tuesday, September 10. A survey of 14 traders and planters revealed that Malaysian palm oil inventories were expected to be at a six-month-high of 1,86 million metric tonnes by the end of August due to low export demand.
Sources say Egypt is seeking 20 LNG cargoes to meet winter demand, as the gas crisis worsens.
Three trading and industry sources confirmed on Friday that Egypt issued a tender for 20 cargoes (cartons) of liquefied gas to meet the demand for electricity during winter, despite a sharp decline in domestic production. It is the first time Egypt issued an tender to cover the winter demand since 2018. In order to be a reliable gas supplier to Europe, the most populous Arab nation has reversed its recent position of being an exporter by buying over 30 cargoes of natural gas to cover summer demand. The Egyptian General Petroleum Corporation's (EGPC) tender closes on September 12.
Palm trades lower and is set to lose money for the week; Malaysia data is eyed
The market expects the Malaysian Palm Oil Board (MPOB) to release its data next week. By midday, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange fell 32 ringgit or 0.82% to 3,885 Ringgit ($897.23) per metric tonne. This week, the contract has fallen by 2.31%. Tuesday, September 10, is the date set for the MPOB to release its monthly palm-oil data. A survey of 14 traders and planters revealed that Malaysian palm oil inventories were expected to be at a six-month-high of 1,86 million metric tonnes by the end of August due to low export demand.
US LNG Export Dominance Tested as Europe's Demand Wilts
The United States has remained the largest exporter of liquefied natural gas (LNG) so far in 2024, but a steep drop in selling prices and a sharp swing in export volumes to key markets is likely testing exporter appetite to stay on top.The United States shipped a record 56.9 million metric tons of LNG during the first eight months of 2024, according to Kpler.That surpassed the 54.3 million tons from Australia and 53.7 million tons from Qatar during that period, and marks only the second straight year that U.S. exporters have topped global export rankings.However…
Palm production slips due to low volume and muted expectations
Malaysian palm futures continued to fall for a fourth consecutive session on Thursday, amid lower trading volume and concerns over low production expectations. By midday, the benchmark palm oil contract on Bursa Derivatives exchange for November delivery was down 20 Ringgit or 0.51% at $3,866 ringgit (US$892.84) per metric ton. "A rather thin volume today suggests a lack of activity in the sales sector." "The biggest concern is the low arrivals of fruit bunches, and poor production performances in both August and September", said Paramalingam Supramaniam at Selangor brokerage Pelindung Bestari.
Conab raises estimate for Brazil's 2024/2025 sugarcane crop
Conab, Brazil's national agricultural agency, increased its forecast on Thursday for Brazil's sugarcane production in 2024/25 but stated that it would still fall below the previous season due to low rainfall and high temperatures reducing yields in key regions. The agency estimates that the sugarcane production in South America will reach 689.83 millions metric tons in this season. This is higher than the 685.86million tons estimated in April, but lower than the 713.21million tons expected in 2023/24. Conab revised its previous estimate up due to the improved climate conditions in northeastern Brazil that allowed for good crop development.
The rising renewable generation has an impact on spot prices
The European power prices for the Friday were lower on Thursday due to the forecasted increase in wind power generation throughout Europe and a decline in demand. Naser Hashemi, LSEG analyst, says that wind power is increasing in Germany and France every day, resulting in a reduction in residual loads. He said that Germany will export up to 14 gigawatts in the middle the day to the Nordic region and neighboring countries. France, however, will remain a net-exporter throughout the day. LSEG data revealed that the German baseload electricity contract for Friday had fallen 31% to 43.50 Euros per Megawatt Hour (MWh) at 0932 GMT.
Palm oil prices rise on weaker Indonesian supply prospects
The price of Malaysian palm oils futures rose on Wednesday due to the prospect of lower supplies in Indonesia, the world's biggest producer, but lacklustre exports restricted gains. By midday, the benchmark palm oil contract on Bursa Derivatives Exchange for November delivery rose 17 ringgit or 0.46% to 3,732 Ringgit ($853.22) per metric ton. The palm oil price is uncompetitive against soft oils due to Indonesian production not meeting expectations. This is surprising as palm origins are usually at their peak during this time of year. Bajoria stated that this could change if Indonesian sales increase and palm oil is replaced by alternatives.
Kuwait and Qatar in negotiations for new LNG supply contract of 15 years from North Field
Qatar Energy has been in discussions with Kuwait Petroleum Corporation for a long-term supply liquefied gas (LNG). This will help to meet the rising demand in Gulf Arab State for electricity generation. Four sources confirmed that the deal will see Qatar provide Kuwait with 3,000,000 metric tons of seaborne fuel per year (mtpa), over a period of 15 years, from its North Field Project, which should begin operations in 2026. Kuwait, a member of OPEC and a major producer of oil, is increasing its reliance upon imported gas in order to meet its power demands, particularly during the summer months when air conditioners are used more.
Venture Global doesn't need any more time from BP to begin production, BP says to regulators
BP Plc, the oil and gas producer, told federal regulators that it had reviewed confidential documents and did not believe Venture Global LNG needed more time to start commercial production. Calcasieu Pass, a plant owned by Venture Global LNG, has been the subject of a longstanding dispute involving BP and Shell regarding access to liquefied gas produced at the plant. Venture Global will become the second-largest U.S. super chilled gas exporter when it begins producing its new 20,000,000 metric tons per year (MTPA) at the end of this year. This will be the second LNG plant, and it will strengthen the U.S.'s position as the largest LNG exporter in the world.
Tyra II Production Successfully Restarted
The Tyra Redevelopment Project (Tyra II) has restarted production. At plateau, the Tyra hub will produce 5.7 million cubic meters of gas and 22,000 barrels of condensate per day.TotalEnergies operates the Tyra field on behalf of Danish Underground Consortium, a partnership between TotalEnergies (43.2%), BlueNord (36.8%) and Nordsøfonden (20%).The Tyra Redevelopment Project is, to date, the largest project carried out on Danish Continental Shelf with the fabrication and installation of eight new platform topsides. With production from Tyra, Denmark…
Saudi Arabia Remains China's Top Crude Supplier
Russia remained China's second-largest source of crude oil in 2022, following repeat top supplier Saudi Arabia, as Chinese refiners snapped up low-cost Russian barrels while Western countries shunned them after the Ukraine crisis.China's crude oil imports from Russia jumped 8% in 2022 from a year earlier to 86.25 million tonnes, equivalent to 1.72 million barrels per day (bpd), data from the General Administration of Customs showed on Friday.Russian crude has been trading in widening discounts to global oil benchmarks following Western sanctions over its invasion of Ukraine…
Wave of New LNG Export Plants Threatens to Knock Gas Prices
A flood of liquefied natural gas (LNG) export projects due online worldwide in mid-decade will vie against lower-cost renewable energy and a revived nuclear power sector, which could rock gas prices and hurt some proposed projects, analysts say.Proposed and approved new LNG plants would boost LNG supply by 67% increase to 636 million tonnes per annum (mtpa) by 2030 from 2021 levels, potentially saturating the gas market."There's over a trillion dollars of natural gas infrastructure being built in the world today. There's a set secular shift and natural gas that is here to stay…
