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World oil prices fall $2 per barrel

Oil prices fell more than $2 per barrel on Friday as Saudi Arabia and Russia discussed easing production cuts that have helped push crude prices to their highest since 2014.

Brent crude futures LCOc1 fell $2.35, or 3 percent, to settle at $76.44 a barrel. The global benchmark lost about 2.7 percent this week, its largest weekly drop since early April. The contract hit its highest since late 2014 at $80.50 last week.

US West Texas Intermediate (WTI) crude CLc1 slumped $2.83, or 4 percent, to finish at $67.88 a barrel. For the week, WTI tumbled about 4.9 percent, its biggest loss since early February, a sharp course reversal after six weeks of gains. The premium of Brent to WTI WTCLc1-LCOc1 hit $8.75 per barrel in post-settlement trade, its widest since March 2015.

The energy ministers of Russia and Saudi Arabia met in St. Petersburg to review the terms of a global oil supply pact that has been in place for 17 months, ahead of a key OPEC meeting in Vienna next month

Philippines buys 250,000 tons of rice, mostly from Thailand

The Philippines’ state agency National Food Authority on Monday purchased 250,000 tons of rice in international tender, European traders said.

Prices were between $465.04 and $461.75 a ton c&f in line with offers received earlier. Of the total, 212,500 tons will be sourced from Thailand and the rest from optional origins. The tender continued recent strong rice purchasing on global markets by the Philippines as the country seeks to build up stocks and cool local prices. The tender had sought up to 250,000 tons of sourced from any origin and was open to state or private suppliers.

Raw sugar edges up, NY COCOA regains some ground

Raw sugar futures edged higher on Tuesday, boosted by the potential that exports from both Brazil and India may be below earlier expectations while New York cocoa bounced off the prior session’s five-week low. July raw sugar was up 0.03 cents, or 0.25 percent, at 12.13 cents per lb at 1130 GMT.

The contract rose to a five-week high of 12.24 cents on Monday. Dealers said the market had been supported by the prospect that Brazilian exports may be lower than previously expected as mills seek to use as much cane as possible for more profitable ethanol production.

Iran tenders to buy 30,000 tons of sunflower oil

Iran’s state purchasing agency GTC has issued an international tender to purchase up to 30,000 tons of crude sunflower oil, European traders said on Tuesday.

Tender deadline is July 10. The sunoil purchase could be 10 percent more or less than 30,000 tons. A bid bond of around 344,000 euros ($405,644)is required.

Soybean futures climb

US soybean futures scaled to a 2-1/2-week high on Wednesday as signs of renewed Chinese demand for US exports lifted prices for a fourth straight session. Corn reached a 9-1/2 month peak on concerns about planting and early crop development due to adverse weather, while wheat extended prior-session gains as dry conditions in key production areas around the world threatened crops.

Chicago Board of Trade July soybeans settled 8-3/4 cents higher at $10.39-1/4 a bushel after hitting a peak of $10.39-3/4 early in the day, the highest since May 7. The contract encountered chart resistance around its 50-day moving average of $10.38.

Wheat rallies on US plains dryness

US wheat futures surged nearly 3 percent on Tuesday on technical buying and crop production concerns due to dry weather in the US Plains wheat belt and other major production areas around the globe.

The US Department of Agriculture said just 36 percent of the US winter wheat crop was in good-to-excellent shape as of Sunday, compared with 52 percent at the same point last year. Dry weather in parts of Canada, eastern Australia and southern Russia, all major wheat exporters, also gave prices a lift.

Chicago Board of Trade July soft red winter wheat was up 14-1/4 cents, or 2.8 percent, at $5.21-1/2 a, while K.C. July hard red winter wheat was up 14 cents, or 2.7 percent, at $5.40-1/2 a bushel.

 

European palm oil firmer

Palm oil on the European vegetable oils market was firmer on Tuesday, tracking Malaysian palm oil futures that were supported by stronger CBOT soyoil futures and energy markets.

Asking prices for palm oil were between $2.50 and $7.50 a ton higher after Malaysian palm oil futures closed between 20 and 31 ringgit a ton up. Strong energy markets could boost vegetable oils demand from biodiesel producers.

CBOT soyoil futures were between 0.17 and 0.31 cents per lb higher at 1630 GMT, lifted by gains in Chicago soybeans on technical buying and relief over the fading threat of a US trade war with China, the world’s biggest soy importer.

Rio Tinto presses Mongolia to shore up copper investment

Rio Tinto called on the Mongolian government to honor the contracts that underpin its Oyu Tolgoi copper project and said the mining world was watching, as anxiety mounts after a series of high-profile arrests.

Mongolia’s anti-corruption agency has arrested two former prime ministers and a former finance minister over an investigation into suspected misuse of power by officials during negotiations linked to Oyu Tolgoi contracts.

Mali’s 2017 gold exports down

Declared exports of informally mined gold in Mali fell by more than half in 2017 to 7.89 tons, mostly due to tax increases, officials at the mines ministry said on Tuesday. That is down from 20 tons in 2016. Mali is Africa’s third-largest gold producer behind South Africa and Ghana.

Lead hits 2-month peak

Lead prices touched the highest in over two months on Tuesday on concern over potential shortages and as investors took short positions on the zinc/lead ratio. Environmental inspections at secondary lead smelters in China have reduced supply in recent months, analysts said.

The ratio of zinc to lead – which is often traded because the two metals are usually found in the same ore bodies – has slid to 1.25, the lowest since December, after touching 1.39 in April and March, the highest since 2007. Benchmark lead on the London Metal Exchange was up 1.5 percent at $2,445 a ton by 1030 GMT, the highest since March 14.

China sells 30,000 tons of cotton

China sells 30,000 tons of cotton at auction of state reserves on Tuesday at average price of 15,135 yuan ($2,377) per ton. Sale represents 100 percent of cotton available for auction.

Egypt procures 3m tons of local wheat

Egypt has procured about 3 million tons of wheat from local farmers since the harvest began 37 days ago, at a cost of 11.8 billion Egyptian pounds ($660 million), the Ministry of Supply said on Tuesday.

The ministry quoted Supply Minister Ali Moselhi as saying that about 3.5 million tons of wheat is expected to be bought from local farmers this year.

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