Turkey, UN Eye Sea Lane for Grain Through Mines of Ukraine – Commodities Roundup

– Gold futures are up 0.8% at $1,834.70 per troy ounce.

–Wheat futures are up 0.2% at $10.52 a bushel

–Three-month copper prices are down 0.5% at $9,166.50 per metric ton


TOP STORY:

Turkey, UN Eye Sea Lane for grain through the mines of Ukraine

Turkish and United Nations diplomats discuss a new proposal to extract grain currently stuck in Ukrainian ports, escorting cargo ships through a safe passage among defensive mines protecting Black Sea ports amid the war with Russia.

The proposal is the latest effort by Turkey and the UN to transport Ukrainian grain out of the country. Russia’s invasion has left about 20 million metric tons of grain stranded in Ukraine, heightening fears of a global food crisis after months in which war has already driven up the cost of food around the world.


OTHER STORIES:

High fuel exports to the United States contribute to gasoline at $5 a gallon

A rapid increase in U.S. fuel exports this year has helped push gasoline prices to a record $5 a gallon and put pressure on U.S. natural gas prices, which are at their highest levels since more than a decade at the start of the month.

In recent months, companies and commodity traders have shipped more U.S. gasoline and diesel to Latin America and other overseas markets, fetching higher prices than the fuel could fetch domestically. . They also sent more liquefied natural gas, or LNG, to Europe after Russia invaded Ukraine.

World’s largest miner abandons immediate exit from thermal coal

The world’s biggest mining company has scrapped the sale of its last thermal coal mine and said it will aim to close the Australian pit in 2030.

Despite record coal prices, BHP Group Ltd. said he had not found a buyer for the Mt Arthur mine, which is one of Australia’s largest coal mines but is technically complex and will have a large clean-up bill when it closes .

Norway’s Equinor agrees with Centrica to supply additional gas to UK

Norwegian energy group Equinor ASA announced on Thursday that it had signed an agreement with British energy supplier Centrica PLC to provide additional gas supplies to the UK over the next three winters.

The new supply agreement adds about 1 billion cubic meters per year to Equinor’s existing bilateral contract with Centrica and brings the total contracted volume to more than 10 billion cubic meters per year, he said. Centrica owns the UK’s largest electricity and gas retailer, British Gas.

Equinor typically supplies 20-22 billion cubic meters of natural gas to the UK each year, which covers more than 25% of the country’s gas demand, he said.

Petrotal Corp. offers 720,000 barrels of oil as Peru pipeline temporarily reopens

Petrotal Corp. said Thursday that about 720,000 barrels of oil from the Bretana field have been handed over to the port of Bayovar in Peru for the July lift.

The London and Toronto-listed oil and gas company said it was able to deliver a significant amount of oil to Bayovar in recent weeks following the temporary reopening of Section II of the Northern Peru pipeline. .


MARKET TALKS:

Copper supply issues can arise when demand increases

10:54 GMT – Copper supply issues could be highlighted when demand for the base metal increases, according to an analyst at Kotak Securities. The world’s top producers, Chile and Peru, have experienced major supply disruptions this year, Kotak said, noting that the countries combined account for about 40% of global supply. Chile’s copper production fell 7.4% year-on-year in the January-April period, while around 20% of Peru’s output is at risk due to tensions at major mines, the report says. . In addition, major producers including Glencore, Southern Copper and BHP have all cut their 2022 production forecasts, Kotak adds, expecting LME copper prices to range between $8,800 a tonne and $10. $200 per ton over the next three months. LME three-month copper fell 1.3% to $9,114.00 a tonne. ([email protected])

Oil wavers as investors eye Fed rate hike

08:37 GMT – Oil prices were little changed after US oil inventories rose more than expected and investors analyze the effect on the economy of the Federal Reserve’s 0.75 percentage point hike. Brent is up 0.2% to $118.45 a barrel, while WTI gains 0.2% to $115.42 a barrel. Data from the Department of Energy on Wednesday showed U.S. oil inventories rose nearly 2 million barrels as analysts forecast a decline of 1.4 million barrels. Investors were still analyzing the impact of the Fed’s rate hike. Risky assets rallied on Wall Street on Wednesday after the rate hike, but risk sentiment deteriorated on Thursday as global equities and U.S. equity futures fell. ([email protected])

Fed rate hike stems metals losses

07:37 GMT – Metal prices are stabilizing after the Federal Reserve raised interest rates by 75 basis points on Wednesday evening. New York gold futures are up 0.5% at $1,829.20 a troy ounce after closing 0.3% higher the previous day. Copper, meanwhile, was down 0.1% at $9,200 per metric ton, after rising 0.7% on higher tariffs. Sentiment for metals remained weak given macro forecasts of rising inflation rates and China’s strict Covid-19 policy which is hampering the restart of industrial activity. “It looks like they’re trying to kick the box when it comes to a recession in what the Fed calls a ‘soft landing,'” Marex analysts said in a note. ([email protected])

Zambia sees potential in Mopani copper mines

07:18 GMT – Zambian state miner ZCCM-IH hopes to turn around operations at Mopani copper mines to ensure sustainability and continued development of the country’s third-largest metals producer, company director Loisa Mbatha says state mining. Zambia has enlisted the services of French investment bank Rothschild & Co to assess strategic options for mining copper at 200,000 metric tons per year as Africa’s second-largest copper and cobalt producer continues efforts to stimulate production in a context of growing demand driven by a global energy economy. transition. “ZCCM-IH is committed to MCM delivering its optimum production levels to contribute to the national production target of three million metric tons of copper by 2030,” Mbatha said. ([email protected];@Nicholasbariyo)

Steel prices will remain high due to demand for Chinese infrastructure and the war in Ukraine

03:28 GMT – Steel prices could trend higher as demand for Chinese infrastructure kicks off from 2am, analysts at Fitch Solutions said in a note. “China appears to be planning to increase its financial support to the economy in 2022, as economic growth prospects weaken due to a weak real estate sector and strict Covid-19 related lockdowns,” they say. . “China’s demand recovery appears to be outpacing supply recovery as Covid-19 restrictions are eased.” Lower exports from Ukraine due to the Russian invasion as well as the reluctance of some market players to import Russian-made steel are also supporting construction material prices, analysts add. ([email protected])

Aluminum rises, helped by upbeat data on Chinese industrial production

02:15 GMT – Aluminum rose in the Asian morning session, helped by upbeat Chinese industrial production data released on Wednesday, analysts said. Data from the National Bureau of Statistics shows primary aluminum production in China rose for a second straight month in May to hit a record high, ING strategists said in a research note. Aluminum production jumped 3.1% year-on-year and 1.8% month-on-month to 3.4 million metric tons as supply constraints eased and aluminum smelters aluminum restarted with the addition of new production capacity, the strategists add. The three-month LME aluminum contract is up 1.95% at $2,643.00 a tonne. ([email protected])


Write to Yusuf Khan at [email protected]

Sharon P. Juarez